Executive Benefits and Premium Financing
C-Suite Executive Benefits Planning
Traditional retirement plans are often insufficient for high-income earners. We offer sophisticated executive benefit solutions that combine the power of leverage with the cash accumulation features of life insurance, enhancing the ability to supplement retirement income while providing greater protection for you and your family.
What Is Premium Financing?
Premium financing involves lending funds to a person or company to cover the cost of an insurance premium. These loans are typically provided by a third-party premium financing company and are primarily used for life insurance.
Clients who typically engage in premium financing are between the ages of 29 and 65, with a net worth of $2 million or greater.
The Kai-Zen Plan — A More Accessible Premium Financing Option
Not high net worth? The Kai-Zen Plan offers a more affordable premium financing solution that goes beyond the typical 401(k) or health insurance for business owners, executives, and professionals.
By using leveraged funds to cover approximately 60–75% of the total contribution, Kai-Zen allows owners and businesses to reduce costs while increasing benefits. There are no personal or business loan documents to sign.
Who qualifies? The Kai-Zen Plan is designed for business owners, executives, and key employees who:
- Are age 65 or under
- Have an annual income of at least $100,000
- Can obtain a standard or better risk classification with the carrier
As a non-MEC life insurance policy, there are no contribution limits or income restrictions.
How the Kai-Zen Plan Works
The Kai-Zen Executive Benefit Plan combines bank financing with employer/executive contributions to purchase a death benefit and maximize executive benefits. Just as you might finance a home or a vehicle, you can now finance your benefits.
Employer/executive contributions are made for only five years. The financing portion matches contributions during the first five years, then takes over and covers the full contribution for the remaining five years.
Benefits the Kai-Zen Plan provides:
- Additional cash to supplement retirement income
- Tax-deferred growth of cash value
- Tax-free income from policy cash value
- Cash for chronic disability
- Cash for chronic or long-term care (LTC)
- Cash in the event of terminal illness
- Tax-free death benefit for heirs
Employers can also use Kai-Zen to protect their business through:
- Buy/Sell Events
- Key Man Protection
- Partner Buyout
The Tri-Zen Plan — A Strategy for Retaining Key Personnel
Tri-Zen is a financed executive bonus strategy that reimagines how life insurance is used with leverage. It combines a pre-tax employer loan with bank lending to deliver more benefits at a lower cost — benefiting both the employee and employer in one of the most tax-advantaged ways available today.
With 3:1 leverage, Tri-Zen brings substantial new money to the table. The life insurance policy serves as the sole collateral for financing, so employees are not required to sign loan documents. Cash value in the policy may also be protected from bankruptcy, and employee benefits are portable.
What makes Tri-Zen different:
- Combines life insurance and bank financing to leverage 3x the contributions without creating an outside liability
- Only 5 planned employer contributions to a trust
- Converts incentive costs from a liability into an asset on the employer’s balance sheet
- Potential for market growth without the risk of market losses
- Less expensive, better benefits, shorter financing period
Tri-Zen benefits for employers (C-Corps and nonprofits):
- Immediate reduction in payroll-related costs
- Creation of a substantial asset instead of a cost
- Ability to offer top-tier benefits while reducing overall expenses
- Improved loyalty among executives, physicians, and key employees
Tri-Zen benefits for employees:
- Potential for substantially higher supplemental retirement income
- Permanent life insurance
- Cash in the event of chronic, critical, or terminal illness
- 3-to-1 matching funds
- No wasted money — unused chronic or critical illness benefits cost nothing
- Asset-protected (subject to state laws)
Tri-Zen qualifications:
- C-Corp or nonprofit organization
- Age 65 or under
- Annual income of $200,000 or more
- Standard or better health if premium is paid by employer
Contact Us
Not sure which solution is right for you? Before committing to a leveraged insurance strategy, get a personalized analysis from our licensed agents. We’ll help you determine whether Kai-Zen or Tri-Zen truly aligns with your financial goals and risk tolerance.