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Simplify Your Life

Executive Life Programs, What Are They?

Executive life benefit plans are designed to replace or supplement group term life insurance for highly compensated employees by offering individually owned policies, either owned by the company or the employee.

These plans provide:

  • Higher coverage levels
  • Full portability
  • Benefits that do not reduce with age
  • Potentially reduced taxation for the employee

Unlike group plans that only offer pre-retirement benefits, most executive life plans also include post-retirement benefit options.

Additionally, executive life plans can enhance supplemental retirement income for highly compensated employees. These solutions offer significant benefits, such as tax-advantaged earnings and distributions and protection from company creditors. For employers, these plans provide strong retention value and improved earnings.

Overall, executive life programs are an excellent choice for future planning, offering significant advantages for companies looking to attract and retain top talent.

The Need for Executive Life Programs

Whether by plan design or through regulatory limitations, group benefit plans can cause unintended reverse discrimination against highly compensated employees. The regulatory limits on qualified retirement plans and plan design caps on group disability and life insurance programs create shortfalls that decrease the effectiveness of these valuable programs.

Executive life programs address these coverage gaps and benefit limitations by using individual products. With institutional pricing and minimal medical underwriting, these plans provide a balanced solution, ensuring adequate coverage and retirement income for top performers while giving them the peace of mind needed to excel.

Executive Life Solutions

FOCUS 10 Life® (F10)

F10 is an employer-paid, simplified issue, 10-year level premium, individual term life insurance plan.

Competitively priced term with attractive post-employment (conversion) insurance options.

It is designed for employees in “white collar” occupations.

It can be used as a valuable tool to help retain and reward your key employees by providing a comprehensive benefit compared to standard group term life. Some of the key features include:

  • Cost-effective guaranteed level premiums for 10 years
  • Simplified issue
  • $100,000 minimum average death benefit
  • Maximum death benefit:
    • 20 more lives: $20,000 x number of covered lives, to $1.5 million
    • For all plans, 10 lives and up, significantly larger benefits are available with plan approval
  • Minimum case size of at least 10 lives
  • Conversion to full suite of carrier’s permanent products, without proving insurability
  • Can be used for Buy-Sell funding, Key Person protection, and Fringe Benefit (personal insurance)
  • Fully portable

Executive 10-Year Term (E10)

E10 is an employer-paid, simplified issue, 10-year level premium, individual term life insurance plan.

It features low-level premium and can be an ideal vehicle for death benefit protection while employed.

It is designed for employees in “white collar” occupations.

It can be used as a valuable tool to help retain and reward your key employees by offering expanded coverage beyond typical group term life. Some of the key features include:

  • Cost-effective, guaranteed level premiums for 10 years
  • Simplified Issue
  • $100,000 minimum death benefit
  • Maximum death benefit:
    • 15-49 lives: $50,000 x number of lives in the group.
    • 50 or more lives: $60,000 x number of lives in the group.
  • Minimum case size of 15 lives (eligible companies must have at least 50 employees)
  • Can convert to EUL in the first five policy years
  • Fully portable

Executive Universal Life (EUL)

EUL is an employer-paid, simplified issue, minimum premium, universal Life insurance plan.

Features extremely low early premium. Premiums increase each year and are guaranteed for the first 5 years. Can be an ideal vehicle for death benefit protection while employed.

It is designed for employees in “white collar” occupations.

It can be used as a valuable tool to help retain and reward your key employees by providing a benefit that is bigger and better than group term life. Some of the key features include:

  • Cost-effective, annually increasing premium
  • Simplified Issue
  • $100,000 minimum face amount
  • Maximum death benefit:
    • 15-49 lives: $50,000 x number of lives in the group
    • 50 or more lives: $60,000 x number of lives in the group
  • Minimum case size of 15 lives (eligible companies must have at least 50 employees)
  • Fully portable

Reach out today to start a conversation about how we can work together to move you and your business forward.