If your clients want to increase the amount they're contributing to their retirement funds, defined benefit plans funded by life insurance may be the answer. It's also a great solution if your client is a business owner looking to provide a defined benefit plan for his or her employees, but who also wants to keep costs low. A cash balance plan addresses these needs and more.

How It Works

As a business owner, your client can use a defined benefit plan and a profit-sharing plan to save for retirement, provide a death benefit, protect retirement assets from creditors, and keep costs low while still providing retirement benefits for his or her employees. Your client will be working with you and a third-party plan administrator to set up to plans for him/herself and the employees. The business will make tax-deductible contributions to both the profit-sharing plan and the defined benefit plan. The bulk of the money will go to the defined benefit plan, which will purchase a life insurance policy for your client. A small additional amount will go to the profit-sharing plan since no discrimination is allowed among employees. The defined benefit plan will pay retirement benefits to your client, or if your client passes away before retirement, will pay a death benefit to his or her beneficiaries.

Our Carriers

Need Help?

Advanced planning concepts are often hard to pitch and harder for clients to understand. We can help you make it as simple as possible. Contact us for help with sales ideas, ideal client profiles, illustrations, and more.

  • Call us at 1-800-823-4852 and ask to speak to a brokerage director.
  • Click here to email us.
  • Click here to email our benefits team.

Defined Benefit Plans Are Just the Beginning - Become a Pinney Partner

In addition to advanced planning concepts, we also offer a wide range of services for agents and brokerages. Agents contracted with us can take advantage of our application fulfillment services, where we function as your back office support - which frees you up to spend more time prospecting and selling.

  • Click here to download our media kit, complete with executive bios, social media links, our services, and contact info.
  • Claim a 30-day free trial of Insureio. We use this CRM in our office to standardize, systematize, and automate our workflow. It integrates perfectly with our drop-ticket application service, making insurance sales a snap for our partner agents.