Tuesday 28 August 2012

When I Felt That I Was Wasting Too Much Money On Premiums, Delaware Captive Proved To Be The Solution

By Tiffanny E. Tayliod


I am the owner of a small, but quite successful business, but we have some rather vexing problems, most of which, I have learned, can be alleviated with the help of Delaware captive insurance. I realize that a concept like captive insurance may not be automatically understandable to most people, so I will talk about the problem that got me interested in it, which was that we were paying way too much for our insurance premiums, but almost never had any claims. Thus the source of my vexation as I cannot contest the need for insurance, but at the same time, I do not understand why I was being charged so much for premiums.

I began to do some research into other insurance alternatives and came across the concept of captive insurance, a concept that I had not been familiar with before. As my understanding of the subject increased quickly, I found myself making the decision that Delaware captive insurance would be my ideal solution. It basically meant that I could set up a captive insurance structure for my business and pay the premium money to the captive which would permit me to save money while still being insured.

I asked around and everyone said that I should have set up a captive a long time ago, a statement that I started to readily agree with. This inspired me to begin a hunt for someone who could help me set up a captive, and in so doing, I encountered a website for a company that was expert in setting them up. I contacted them and they began the process of helping me to set up a captive, which was not as complicated as some might think, but should still be done only when assisted by experts.

They made sure that I understood all about the rules and benefits of an 831b captive, a term that refers to a certain portion of the tax code. I was indeed very thankful for this information and advice as it pertained to many of the issues my business was facing and we benefitted from using this type of captive.

When I eventually got all the way through the process of creating a captive and had adjusted my insurance structure to fit it, I automatically began to see how I was benefiting from it with tax breaks, which made me feel like I was no longer wasting money. I am glad that there are companies out there who can help a small business like mine by setting up captives and explaining how they can work for each and every unique business.




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