DKA is a solutions-based financial planning company that advises high net worth individuals, businesses and their advisors on best practices in using innovative life insurance and annuity products. With more than 25 years of experience, DKA offers a comprehensive approach that treats life insurance as a powerful asset class. In addition, the firm provides clients with cost-effective, personalized insurance solutions that optimize tax-advantaged wealth.
DKA consults with attorneys, bankers, accountants, investment advisors and trust officers, as well as high net worth individuals to develop, design and implement innovative insurance planning and annuity strategies.
Life insurance taken out on the partners of a business so that if one partner dies, the
death benefit paid to the remaining partner(s) will fund the purchase of the deceased
partner's share in the business. Buy-Sell insurance is generally accompanied by a buy/sell
agreement that requires any surviving partner(s) to purchase the remainder of the business
in the event of a partner's death.
A trust that allows the insured to leave assets to a charity and receive income and tax
benefits at the same time. The insured can receive income from the trust for a specified
period of time, after which all remaining assets are transferred to the charity.
Enhanced charitable annuity trust that was designed as a grantor trust so that the present
value of all future payments to charity may be claimed presently as a charitable income
tax deduction
A retirement account to which you can contribute up to $4,000 (or 100% of your
compensation, whichever is less) annually. IRAs allow your money to grow tax deferred and,
depending on your personal circumstances, contributions may be tax deductible and
withdrawals prior to age 59 1/2 may be assessed a 10% IRS penalty. Withdrawals from IRAs
are taxed at then-current rates.
The life insurance phrase to describe the status of your policy. If your term life
insurance policy is "In Force", then the premium payments have been made and you are
currently protected.
The use of a defective grantor trust is a powerful tool to leverage a donors gifts to the
next generation without incurring gift taxes
An arrangement whereby life insurance is managed by one person or group (called the
Trustee(s)) for the benefit of another. The person who owns the life insurance gives the
policy to the trustees, who have legal title to it and have fiduciary responsibility to
protect it for the future benefit of whoever the person names as his or her beneficiary.
Intergenerational spilt dollar is designed as a method to reduce the value of the estate
of the oldest generation through valuation discounts at the time of death in the range 40%
to 75%
An insurance policy taken out by a business to compensate that business for financial
losses that would arise from the death of an executive whose absence would cause the
business significant to falter or close. The aim is to compensate the business for losses
and help ensure business continuity.
The classification assigned to the prospective insured during the underwriting process
that indicates what premiums she or he will pay for their life insurance coverage.
Similar to Universal Life except that it insures two people. The policy is specifically
designed to provide funds at the death of the second spouse to cover estate-tax liability
(in most situations, federal estate taxes are not significant until the second spouse
dies). This type of policy can provide needed funds so that the family's estate is
preserved for heirs.
A policy purchased with a single premium payment that makes regular payments to the
insured for a specified period of time. The premium consists of a portion of the premium
paid and earned interest.
Term life insurance provides coverage for a limited period of time, specified as the term.
Term insurance is often the most inexpensive way to purchase a substantial death benefit
on a coverage amount per premium dollar basis. When the term is up, the insured can either
drop the policy or pay annually increasing premiums to continue the coverage. If the
insured dies during the term, the death benefit will be paid to the beneficiary. There is
no cash value to term insurance.
Underwriting is a set of guidelines that insurance companies use when processing an
application that determines the appropriate rate class of the prospective insured and can
then define the appropriate premiums for the life insurance policy.
A policy that remains in force for the insured's lifetime, whereby premium payments above
the cost of the insurance are credited to the cash value of the policy, minus appropriate
fees. The cash value is tied to the performance of the insurance company's entire asset
account portfolio.
A life insurance policy that remains in force for the insured's whole life as long as
premiums have been pay correctly. Cash value is based on the performance of the company's
asset portfolio.
