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Premium Finance Life Insurance
Retirement Strategies with More Benefits
Our Strategy
1. High Net Worth Estate Planning Design
2. Key Employee Retention Design
3. Tax Exempt Lifetime Income Design
4. Charitable Design
Today we have a total of 18 billionaire clients and another 1,600 wealthy and ultra-wealthy clients. All of which have never written a check for insurance premium and most every one of these clients chose not to pay any of their interest on the premium loan nor did they choose to post a single personal guarantee for the loan. This unique and proprietary financial strategy allows the entire loan to be paid in full from the death benefit proceeds. After the loan is paid in full the remaining death benefit goes to pay-off the insureds estate taxes and/or any other purpose that the insurance policy was intended for (Legacy Plan).
Peace of Mind for Today, Tomorrow and in the Future
The following is an explanation of how this unique strategy can work for your clients.
Why is a bank willing to finance a house for you with you only having to put down 10-20%?
They have the house as collateral.
If you could borrow money at 4% and earn 8%, how much would you borrow?
As much as I can.
Why would a bank finance your life insurance premiums?
They have the life insurance policy as collateral.
What do these questions have to do with the IPG and Life Equity Consulting?
They perfectly describe how bank premium financing works. The lender finances your life insurance just like they would your house. The house is your collateral for the home loan. The life insurance company pledges the collateral, in the form of guaranteed cash values, for your financed premiums. Just as you pay interest on the mortgage, you pay interest on the premium financed by the bank.
There are several key differences:
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With our life insurance strategy there is no 10-20% down payment.
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With our life insurance strategy, you never write a check for the interest. The interest is rolled into the cumulative loan.
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With our life insurance strategy, at death the loan is paid in full and your beneficiary receives a large, tax-free, lump sum payment.
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With our life insurance strategy, you can receive up to a large six figure, tax-free income stream for life in as little as 15 years.
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Any collateral is typically released in as little as 10-12 years. During that hold time, it is still earning interest for you just like a CD would. Or if it’s in an investment account, it is never disturbed. You have complete control of it. You just cannot liquidate it until after the collateral is released.
Unlike the value in real estate which rides the waves of market fluctuation, our life insurance strategy offers huge upside potential with guaranteed downside protection. Our method halts decreasing market returns at 0% and earnings up to 14.5%. At each policy anniversary, your gains are locked into place and are never at risk.
Bank Premium Finance Life Insurance
sProtect What Matters Most
It’s a difficult subject to discuss. No one wants to think about their death. But the fact remains- it’s not a matter of if the day will come, but when the day will come. That’s the tough part in that it could be today, tomorrow or hopefully, decades from now. The unpredictability of life is the very reason to act today to secure your client’s family future.
They’ve taken care of them their entire lives. With Life Equity Group, you can provide for them all of their lives if something should happen to them.
SUMMARY
Whether they’re worth $1 million or $500 million, our unique and proprietary financial strategy is designed to provide you with tax-free income within a projected 10-12 years. Annual incomes are illustrated to range from a small 5-figure annual distribution upwards to 7-figures within a projected time frame. This strategy was designed and built around high net worth clients. This strategy is designed to be set up in an Irrevocable Life Insurance Trust or an LLC providing the HNW client Peace-of-Mind knowing that their life insurance policies are protected from lawsuits and are bankruptcy remote. Annual distributions are projected to start with 15 years of inception. Our strategy is built around a specially designed indexed universal life insurance policy from top rated insurance carriers and is available through our insurance provider company. One of the unique benefits is that our clients have the option of not having to write a check for premiums as well as being able to roll up the interest payable out of the death benefit proceeds. There is also an option where the client can select to pay a fee which also can be rolled up into the loan whereas, they do not have to post a personal guarantee.
Benefits of Implementing the Prestige Strategy™… Little to NO Cost to Implement
How the Prestige Strategy™ works…
- Nationally recognized bank lends premium.
- High Cash Value policies are used to collateralize the premium loans.
- Additional outside collateral is used to cover the shortfall on the interest portion of the loan. (This is usually for a period of 10-12 years on average.)
- Loan Interest rate is based on LIBOR plus a small spread.
- Policy crediting rate average has historically been 2% higher than the loan borrowing rate.
- Loan Exit Strategy: Loan, interest and PG is paid off from death benefit process.
Provider Company History…
- Has been providing solutions for wealthy and ultra-wealthy clients since 2000.
- 2015 won the Family Office Review Award for BEST Insurance Provider.
- Over 1,600 clients including 18 billionaires.
- Over $9 Billion in first year premiums financed.
- Since inception they have never had a loan called.
- The provider group has been fully vetted by major banking and insurance institutions.
- 100% persistency rate over the last 10 years, and better than 90% persistency since 2000.
- Proprietary life insurance product built by 13th largest insurance carrier in the world
We offer 4 Unique Strategies with Little to No Out-of-Pocket, Leveraging Minimal Collateral
- Key Employee Retention Design
- High Net Worth Estate Planning Design (Non-MEC & MEC Designs)
- Tax-Free Income Design
- Charitable Design
With the proprietary strategies that Life Equity Group offers, your clients can stop worrying about the future by planning for it today. We make it so simple because they will never have to write a premium check or pay the interest the lender charges you for the funding the premiums on the policy. Our clients have the option of allowing the insurance company to pay the lender back out of the gross death benefit leaving substantial tax-free death benefits to your heirs.
Now is the time to secure your family’s future. But with our plan, they don’t have to die to collect. In as little as 15 years from today, they can enjoy a six-figure, tax-free income for life. If they should die late in life, your client will have benefited handsomely with tax-free money. At death, their beneficiaries will receive a large tax-free lump sum settlement.
Estate Planning
We provide you liquidity to pay your clients estate taxes without them ever writing a single check
The last thing your client should worry about while making difficult inheritance decisions is burdening their loved ones with estate taxes. They want to leave their loved ones with their estate intact and not burdened them with having to liquidate their assets to pay your client’s estate taxes.
These estate taxes imposed by the federal and state governments are both due and payable within 12 months after death.
This can be a problem for many when the bulk of their estate is invested in real estate and other non-liquid assets. Your client being forced to liquidate their assets in a fire sale to pay their state and federal estate taxes is not always in their best interest as it seldom results in getting a fair price.
There are several creative ways to minimize estate taxes. Your attorney can suggest various trusts and how they may help your situation. No two high net worth individuals have the same needs that need addressing. There is one common thread though, and that is liquidity. Life Equity Consulting can provide the liquidity they will need to pay off all the taxes without them ever writing a check.
Annual Tax – Free Retirement Distributions
The mindset has always been and will continue to be, “I’ll start saving more next year.” It’s human nature. Before you know it, the years have passed all too quickly and you’re retiring with very little in your 401(k) to supplement social security.
Life Equity Group allows your client to enjoy their retirement years with a six-figure, tax-free income for life to supplement your 401(k) and social security. Our retirement strategy also has a Legacy Plan built into it especially for their loved ones. This all can be achieved without ever limiting their current lifestyle and start in as little as 15 years from today.
The days of working hard just to fund a meager retirement are over. Our proprietary bank premium finance platform will allow your clients to Retire Wealthier and Sooner than they ever thought possible.
Most people today simply do not have enough money to fund their lifestyle, much alone fund their retirement.
Employee Retention
We Are Changing The Way America Retires
Whether your client is a sole proprietor or they own a company who employs hundreds of employees this is a strategy they will want to review. This strategy is a non-qualified plan and is completely discriminatory unlike the 401(k) plan you may offer currently.
Deferred Comp Plans, Pension Plans and 401(k) Plans for most company owners are a thing of the past. Today, more and more Employers, LLC’s, Hospitals, Medical Groups, Universities, Law Firms, Auto Dealerships, Manufacturers, Franchise Organizations, Public and Privately-owned Corporations are jumping on the bandwagon and making sure their KEY essential employees stay with them for years to come.
PROBLEM:
- 78% of Business Leaders rate engagement & retention as a top concern.
- Failing to hire more great people impedes great performers from staying great.
- According to 2015 Tiny Pulse Survey, 23% of employees would leave for only a 10% raise.
- Only 31% of employees feel strongly valued.
- The average cost of replacing a key employee is 275% of their salary.
- Top 10 S&P 500 Companies Pension Plans are under funded by $225 billion-dollars
SOLUTION:
- Employers can recruit, retain, reward and retire select key employees using a unique premium finance structure.
- No cost to employee & little to no out-of-pocket for employer
- Provides employee tax-free income for LIFE
- Selective based
- Vesting period established by the company
This proprietary Employee Retention and Retirement Plan is non-qualified, so the employer does not need to offer this plan to all their employees. Most companies use this plan to lock in their KEY essential “C” Suite Level employees which might include CEO, President, CFO, COO, CMO, any VP and any company that has National, Regional, General, Assistant General Managers as well as finance managers anyone they see as essential and could not afford to lose this person to one of their competitors.
When a company has 50 or more key employees with incomes of $75K/yr. W-2 salary, 62 years or younger there is NO medical underwriting needed as this plan automatically becomes a Guaranteed Issue. If a company has 1-49 key employees, to qualify they must earn at least $75K/yr. W-2 salary, 62 years of age or younger and must be medically underwritten.
This proprietary retirement plan provides your client’s key employees with two things no other retirement plan has to offer.
- A tax-free retirement income for LIFE upon retiring.
- A multi-million-dollar death benefit paid to the beneficiaries tax-free.
It is a retirement strategy that is too good not to offer key essential people. This Employee Retention and Retirement Plan is vastly changing the way Corporate America recruits, retains, rewards and retires their key essential people.
With the economy doing so well financially and the unemployment rate being at its lowest level in history, companies are seeing some of their long-time employees and corporate executives and professors jumping ship and going to work for their competitors for a mere 10-15% pay raise. If these corporate owners or even universities want to protect themselves from this sort of thing from happening they will need to offer their key people something more than just a matching 401(k) Plan or a ping-pong table in the break room.
This is where an Employee Retention and Retirement Plan like the one we are sharing with you today comes into play. Employees, Executives and/or Professors would never think about leaving their current position to go to work for their competitors because they would never receive a retirement package like this anywhere else.
If a company or university can save one or two key people from leaving each year it could mean tens of thousands in savings. Imagine over the next 10 to 15 years if your organization didn’t lose one KEY person to a competitor. This plan is designed not only to help retain and retire their key people but in doing so it will increase revenue streams, efficiency in workflow and boosts company morale.
The Employee Retention and Retirement Plan offers key essential employees, executives and professors a secure financial future because it provides them with a retirement strategy where they will receive a TAX-FREE INCOME, upwards to 3-times their annual salary for the rest of their LIFE and be able to leave a LEGACY of hundreds of thousands upwards to millions of dollars to beneficiaries all for little to NO out of pocket cost on the companies behalf.
The Employee Retention and Retirement Plan will allow companies and universities to:
- Recruit the best people into their organization
- Retain KEY select employees for years to come
- Retire KEY select employees with up to 4x their annual income!
- Provide a tax-free retirement income for life
- Provide a multi-million-dollar death benefit to the company/and or employee heirs
- Little to NO out-of-pocket cost to company
- No ERISA restrictions to follow (non-qualified program)
- Company sets their own vesting period
- Implement Plan/add key participants anytime during the year
- Boosts company morale
Do you think your clients offering their key employees a tax-free lifetime retirement income of 1-3 times their salary along with a large 5-6 & 7-figure death benefit would retain more of them long term?
The Employee Retention and Retirement Plan affords you an unmatched industry advantage for employee recruiting, rewarding, retention, and retirement.
It is important to note that the company takes on ZERO debt with this proprietary employee retention and retirement plan. Their company’s balance sheet remains balanced.
So why not offer an employee retention and retirement strategy to where you will never lose another valued employee ever again? Your company will not only be able to retain key people, but you will now be able to recruit the best and most capable employees your industry has to offer. Even if you are not a large company or you don’t spend large amounts of money building out gyms, our solution will work even for the smallest companies.
All of this can easily be achieved without disrupting your client’s cash flow or putting the squeeze to future expansion plans. We guarantee they will never write a check!
Take your financial practice to the NEXT LEVEL!
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Give yourself the opportunity to earn a generous 6-figure RESIDUAL income annually
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Learn to build a successful agency of your own by recruiting others
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Be able to provide clients with alternative solutions that offer double-digit annual yields
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Offer Alternatives that are designed to keep pace with or outperform traditional investments without taking on unnecessary, unpredictable risk
The information in this website is for AGENT USE ONLY and NOT FOR PUBLIC USE. The Life Equity Group is not a Registered Investment Advisor, Broker/Dealer, Financial Analyst, Financial Bank, or Securities Broker. Nothing herein is intended to constitute an offer, or the solicitation of an offer, to buy or subscribe for any securities to any person in any jurisdiction unless otherwise stated. Offers or solicitation which are made to buy or sell any securities are only to be made through the disclosure memorandum, otherwise, which contains important information about risks, fees, expenses and details. Unless otherwise stated, any securities described will not be registered under the US Securities Act of 1933 as amended, or any other act, and only accredited investors defined in 17 CFR 230.501(A) may purchase them. The information contained is not intended to be, and it does not constitute investment advice, tax advice, or an offer to buy or sell, or as a recommendation, endorsement, or sponsorship of any security, Company, or Fund.