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Financed COLI & SERP Examples
The Solution is Clear 70% Savings
- Financed COLI life insurance are examples of the best way to provide employee benefits or fund Supplemental Executive Retirement Plans
- Offset expenses and create liquidity
- Much less expensive with greater protection, flexibility, transparency and increased benefits
- All done with the lowest possible cost of insurance!
Know Your Options
| Type of Life Insurance | Permanent Coverage | Inflation Protection | Exit Strategy | Available To General Public |
| No Lapse Guarantee | Yes | No | No | Yes |
| Term | No | No | No | Yes |
| Premium Finance | Yes | Yes | Yes | No |
Life Insurance For High Net Worth Corporations
Term: Coverage is not permanent and all contributions become worthless when policy expires, 98% chance client gets no benefit. Not a good investment.
No Lapse Guarantee: Permanent with annual renewable term costs to provide the lowest cost of insurance but still not cheap. Highly exposed to inflation. No control over policy or cost of insurance. Bad investment.
Premiums Financed vs. Premiums Non-Financed 70% Savings
Teachers Pension Advisory Services
Sample Case Studies
Client A: Indexed Universal Life, $10 Million Increasing Face Amount, Standard, Non-Tobacco
Assumptions: 40-Year-Old Male, Cash Value Distributions After Year 12, Full Interest Paid Annually 5%
Self-funded:
10-Year Premium Paid Total:$3.72 million (10-Pay Policy)
Bank-funded:
11-Year Interest Paid Total: $1.088 million
Total Savings:$2.632 Million
Tax-Free Lifetime Distribution Amount Age 52: $254,111 per yr.
Projected Remaining Death Benefit Age 90: $31.1 million
Client B:Indexed Universal Life, $20 Million Increasing Face Amount, Standard, Non-Tobacco
Assumptions: 50-year-old male, Cash Value Distribution After Year 12, Full Interest Paid Annually 5%
Self-funded:
10-Year Premium Paid Total: $11.052 million (10-Pay Policy)
Bank-funded:
11-Year Interest Paid Total: $3.232 million
Total Savings:$7.820 Million
Tax-Free Lifetime Distribution Amount Age 63: $650,728 per yr.
Projected Remaining Death Benefit Age 90: $28.9 million
Client C:Indexed Universal Life, $30 Million Increasing Face Amount, Standard, Non-Tobacco
Assumptions: 58-year-old male, Cash Value Distribution After Year 12, Full Interest Paid Annually 5%
Self-funded:
10-Year Premium Paid Total: $21.233 million (10-Pay Policy)
Bank-funded:
11-Year Interest Paid Total: $6.9 million
Total Savings: $14.332 million
Tax-Free Lifetime Distribution Amount Age 63: $1.64 million per yr.
Projected Remaining Death Benefit Age 90: $26.5 million
Client Testimonial
Don Levit (Client, Chartered Life Insurance Underwriter)
Mr. Levit is an owner of the Houston-based Grocers Supply Company, Inc., the largest wholesale grocery business in the Southwest United States. He has also spent over 30 years in the life insurance industry, where he has earned accreditations as both a CLU (chartered life underwriter) and ChFC (chartered financial consultant).
In 2009, Don, who already owned eight different policies, realized that paying for any additional life insurance out-of-pocket would serve no purpose given his estate planning needs. The appraised value of his stock ownership in the Grocers Supply Company was so high that the costs of doing so and his needs were just too far apart.
“Thanks to TPA Services, now I understand why 70% of Fortune 1000 companies finance their key-man life insurance or employee benefit programs. These are higher-level life insurance programs. The conservative, universal life structure, which TPA Services put into place, led to some extraordinary out-of-pocket savings for me.
The ability to access cash value within this program as well as its ever increasing death benefit, make it by far the safest option for my needs or most anyone else for that matter who can qualify to secure such advantages both personally or for their business.”