Leveraged Life Insurance Information

A Positive, Secure Arbitrage Opportunity

Discover the ultimate way to incorporate a life insurance program into your organizational portfolio. The leveraging of corporate owned life insurance costs allows for exponentially higher yields through a resulting arbitrage. These advantages can be secured at a fraction of the cost and risk as opposed to paying premiums out of pocket. The financing of life insurance premiums represents a competitive advantage that no other type of corporate life insurance benefit program can compete with.

By electing to finance corporate owned life insurance costs through equity-indexed universal life insurance, organizations transform their employee benefit programs from merely a safety net into a high-yield, spread instrument. By utilizing the managerial expertise of Teachers Pension Advisory Services, this is accomplished through the leveraging of the plan’s costs. This allows our clients to utilize the arbitrage formed between the life insurance premiums that are financed at exceedingly low interest rates and the generous, tax-deferred, cash value interest crediting that have helped to make equity-indexed universal life insurance plans some of the fastest growing products in the industry.

The cash value earnings of equity-indexed universal life lock in annually with no downside crediting risks and continue to compound while growing tax-deferred every year during the entirety of the program. Through our ability to secure preferred, relationship lending terms for our corporate owned life insurance clients, Teachers Pension Advisory Services strongly recommends for those who qualify to consider the benefits of leveraging their COLI costs.

Why?

Our financed, corporate owned life insurance services are structured by specialists who build plans which are so conservatively designed that they are practically able to pay for themselves through the arbitrage that is created. By financing your corporate owned life insurance costs, businesses and organizations are in fact minimizing the risks of their life insurance program while maximizing its benefits. Teachers Pension Advisory Services does not endorse high-risk or variable COLI programs.

The Most Transparent, Flexible Form Of Life Insurance

One of the primary advantages for those organizations that choose to implement a leveraged, corporate owned life insurance plan is the flexibility it offers. Our clients may have the option of paying full, partial or no loan interest on the leveraging of their life insurance expenses while our lenders pay the premium costs on their behalves.

The Teachers Pension Advisory Services corporate owned life insurance management team is comprised of consultants who conduct extensive analysis for our clients prior to implementation. In doing so, we go to great lengths to ensure that the organization’s ultimate goals and objectives for their program are being met. We take great care in disclosing all of the costs associated with COLI plan in order to craft one that suits your organization.

Security Of Principal And No Loss In Value

The Teachers Pension Advisory Services’ corporate owned life insurance programs are designed to give your organization security of principal as they do not have any variable, cash-value crediting risks associated. In addition, the equity-indexed, corporate owned life insurance plans managed by TPA Services earn locked in cash value gains that compound and grow tax-deferred every year. The products we have you select from are offered by the top-rated carriers in our industry. They will provide your corporate owned life insurance program with a reliable and transparent crediting mechanism leading to significant cash value build up.  As an added incentive, TPA Services structures COLI death benefits to automatically increase annually. This serves to offer your company even more protection while also providing a safeguard against inflation.

 An Added Bonus: Want Lower Interest Rates And Better Lending Terms? We Can Help

Our corporate owned life insurance managers routinely review and negotiate COLI financing terms on behalf of our clients in order to maintain an optimally performing program for our clients.

By becoming a Teachers Pension Advisory Services corporate owned life insurance plan holder, your organization is not limited to simply securing itself exceptional COLI lending terms. You can also have an opportunity to pursue lower interest rates and more desirable lending terms for all of your borrowing and refinancing needs based on your organization’s financial suitability.

How can we do this? TPA Services maintains close associations with a host of respected and renowned lending institutions because of our large client base. Utilize our relationships and see the benefits across your organizational landscape.

These Teachers Pension Advisory Services preferred, relationship terms can include opportunities for among other things:

• Low, low interest rate loans
• Ability to fix, swap or float interest rates at any time
• Little to no collateral
• Minimal Fees
• Options for full, partial or no interest payments at all
• A non-recourse, limited liability structure