Monthly Archives: September 2020

4 Financial Benefits of Captives

Captive insurance companies are created and controlled by the businesses they insure. This self-insurance is used to mitigate risks that cannot be or are difficult to insure, including product liability, litigation fees and malpractice. Any of the claims made against these businesses for their covered risks are paid by the captive, protecting corporate assets.

Tax Benefits

Captive insurance, including group captive insurance, has several tax benefits. For example, company premiums are not considered taxable income for the captive, but it is also a tax-deductible expense for the parent company. In addition, as the captive’s assets increase, they can be distributed to the company’s owners as dividends, which have a significantly lower tax rate than income.

Cost Reduction

Not only do companies accumulate (and protect) assets through captives, but they also reduce their costs. They have reduced operating and administrative costs for the captive. In addition, companies are able to tailor their coverage, so they are not paying for coverage they do not need. They determine their deductibles and incentives for loss control. Finally, they gain access to the reinsurance markets, which would have been unavailable without the creation of the captive.

Risk Reduction

Not only do captives provide policies that protect the company, but the underwriting process identifies corporate risks and their probabilities. This allows companies to create new processes that improve safety and reduce risk. As businesses focus on risk management, they reduce their premiums. This focus may then spread to other areas of the business, improving safety and risk  throughout the entire company.  

New Income Stream

Because captives are businesses, any company that starts a captive is actually starting a new business and entering a new industry. This process distributes corporate risk among industries. In addition, as they grow, captives can become full insurance companies, offering insurance services to clients outside the parent company and creating a new revenue stream.

Because of the capital investment requirement of captives, consider researching all your captive options prior to investing.

Landscape Art by Khalil

I wish I could share a lot of his recent works here, but I need to get permission first. Otherwise, he would give me a mouthful, LOL. But here’s one that I think looks pleasing to my eye. 🙂

By the way, he is accepting art commission these days. He is earning his own money while studying at home.

Simple tips to make your online classes easier and productive

Sharing with you these important tips posted by CIIT, a digital arts school, on their website for students taking online classes. CIIT is where my son presently enrolled at.

Debunk the negative perceptions about virtual classes. Turn your semester into a productive one with these hacks that will surely boost your focus.

Photo by J. Kelly Brito on Unsplash

Organize your desk

Clean your workspace and remove clutters that can distract your focus. It’s also best to move your desk in well-lit areas to help keep your senses awake and pump the energy you’ll need for the rest of the day.

Start a journal

Since all modules and quizzes can be done through online learning platforms, it’s easy for you to procrastinate. Then you’ll realize you need to rush all tasks to meet the approaching deadlines. Avoid this vicious cycle with the help of a journal. List all your tasks and sort them by priority. This will help you plan your week ahead and escape any reasons for dawdling.

Turn on your go-to playlist

Working with music on can be a hit or miss depending on the playlist. Play various songs and experiment on genres that can help you improve your focus. Some of these include lo-fi chill beats and study music playlists you can listen to online—and download for free.

Take short breaks

Unplug and refresh your mind. Allot 15-minute breaks in between your classes to help your brain cells recover and prepare for the next module. Grab some snacks or take a short nap before moving back to your desk and completing the rest of the tasks.

Find a study buddy

Studying alone can be quite boring, especially if you’re missing your friends at school. Worry no more! There are many web and mobile apps that you can use for free to meet your study buddy virtually. You can even form study groups and discuss the lessons like you usually do.

Source: https://www.ciit.edu.ph/