DRDA's Captive Risk Management Plan (RMaP) is a business tool for managing your business and its potential financial risk effectively. Part of being a business owner is realizing and accepting there is risk, but it is how those risks are managed can be the difference between success and failure or prosperity and mediocrity.
Protecting and building business owner assets is the primary goal of the RMaP plan. This is achieved by insuring risk with RMaP pre-taxed dollars and not after tax savings. When done this way, a captive can take in much larger sums of money in premiums annually, the right way. This alleviates the need to pay tax on the premium received and even still, that premium is tax deductible by the insured business. See How It Works for a more detailed description of the process.
The ideal RMaP candidate is:
A small or middle market business,
Has $150,000 in discretionary cash flow
Willingness to participate in risk management,
Wants to accumulate wealth pre-tax, and
Strong desire to protect assets.
The captive is an investment that creates surplus available for other ventures by the captive owner. Any investment income made by the captive is taxable, however. This captive changes the current insured risks and can cover additional risks to improve the overall costs.