Multiple Life Benefits and Capabilities (GI/SI)

Robust solutions for the executive benefits market

An executive benefits solution is usually provided when a business wants to reward and retain their top executives, most commonly through nonqualified deferred compensation plans. Life insurance policies are placed on each of the executives, and the business normally owns the policy and pays all or part of the premium. 


Bank Owned Life Insurance (BOLI)

Banks purchase BOLI policies on the lives of their key, highly compensated, actively-at-work executives to recover the cost of providing pre- and post-retirement employee benefits. Not to be confused with Credit Union Owned Life Insurance.

Types of cases
  • Typically guaranteed issue (GI)
  • Single premium MEC, high persistency
  • Yield driven, long-term arrangements
Guidance
  • Limited GI capacity

Corporate Owned Life Insurance (COLI)

Employers purchase life insurance on the lives of their key, highly compensated, actively-at-work executives to offset the liabilities associated with executive benefit plans.

Types of cases
  • Nonqualified Deferred Compensation (NQDC)
  • Supplemental Executive Retirement Plan (SERP)
  • Other employer-owned plans
Typical design
  • GI; some SI; maximum funded, minimum non-MEC death benefit
  • Usually C corporations and “for profit” entities
  • Fully underwritten cases also available
  • Contact us on cases over 100 lives and we’ll illustrate it for you
Guidance
  • Must be corporate or trust owned
  • Participants are executive, highly compensated (top 35% of wage earners or $120,000 in earnings)
  • Clear employer – employee relationship
  • Actively at work

Corporate Sponsored Individually Owned Life Insurance (CSIOLI)

Employer funded, cash accumulation life insurance policies for highly compensated employees as a source of supplemental retirement income. CSIOLI solutions are ideal for pass-through entities, S-Corporations, hospitals and attorney groups. Companies with qualified plan issues (low limits) are also suitable.

Typical design 
  • GI/SI
  • Contribution driven (maximum funded), minimum death benefit
  • Retirement focused
  • Employer pay all
  • Employer/employee combinations – portable if employee leaves company
Guidance
  • Clear employer – employee relationship
  • Employer funded OR will consider if combination of Employer and Employee funding
  • No voluntary plans or 100% employee money

You can succeed in the executive benefits market

With our competitive products, sales expertise and streamlined process, you have the resources to help you succeed in the executive benefits market. For additional information and assistance, contact any of our valuable resources

Contact Info

Jennifer Ortale

National Director of Sales - Executive Benefits

651-665-1474

Email Jennifer Ortale

Advanced Marketing

Email Advanced Marketing

Our Guaranteed Issue Program is based on the applicant meeting all the eligibility requirements, and does not guarantee that a policy will be issued.

Guarantees are based on the claims-paying ability of the issuing insurance company.

Life insurance products contain fees, such as mortality and expense charges (which may increase over time), and may contain restrictions such as surrender charges.

Please keep in mind that the primary reason to purchase a life insurance product is the death benefit. 

Additional agreements may be available. Agreements may be subject to additional costs and restrictions. Agreements may not be available in all states or may exist under a different name in various states and may not be available in combination with other agreements.

Policy loans and withdrawals may create an adverse tax result in the event of lapse or policy surrender, and will reduce both the surrender value and death benefit.  Policyowners should consult their tax advisor when considering taking a policy loan.

Variable life insurance products contain fees, such as management fees, fund expenses, distribution fees and mortality and expense charges (which may increase over time).  The variable investment options are subject to market risk, including loss of principal.

The life insurance death benefit is income tax free to the business if the business, at the time of purchase, had met the requirements of Internal Revenue Code Section 101(j) including providing the insured with advance notice, obtaining the insured's prior consent to be insured, and meeting insured's executive income requirements.

DOFU 3-2018
454318