Group Term | Guaranteed Issue for Small to Mid-Sized Business Owners
Reward key employees with an executive bonus plan
LIFE INSURANCE FOR HIGHLY COMPENSATED INDIVIDUALS
Executive UL is an institutional purchase (employer paid) life insurance program on the lives of a distinct group of highly compensated employees without exception, delivered by the issuance of individual insurance policies, underwritten on a guarantee issue type basis.
Would you like to get up to $5mm of life insurance through your company with no Under Writing (guaranteed issue)?
It’s called Executive Life or group term carveout, and it’s a benefit for only highly compensated employees.
It’s a low cost UL policy that the company pays for and its portable so you can take it with you when you leave or retire.
Simply have your benefits manager or CFO contact us to see if your company qualifies.
Basic qualifications: A minimum of 25 executives making over $100k per year.
If your company already offers an executive life insurance program, we can review your current plan to see if we can improve your coverage or reduce the cost for your company.
[ HIGHLIGHTS ]
– Corporate Paid Program (not voluntary)
– Guarantee Issue Type Program
– Eligibility: White Collar workers earning $100,000 or more
– Individual Current Assumption UL policies
– Ability to pay minimum premium (COIs only)
– Minimum Premiums Rate Schedule Guaranteed for 5 years
– Minimum Death Benefit: $100,000
– Maximum Death Benefit: $5,000,000
– One medically related question, Ages 18-70; Ages 71-80 additional questions
– Portable without change to death benefit amount nor pricing
– Required Insured Lives: 25+
Formula to determine maximum death benefit on a case
Lives — 25-49: 40K per life (ex: 30 lives = $1,200,000)
Lives — 50+: 50K per life (ex: 50 lives = $2,500,000)
Minimum Annual Premiums: Year 1
Gender distinct; unismoke
Age 40 50 60
Male $641 $1,277 $3,257
Female $605 $1,145 $2,849
EXECUTIVE SAMPLE CASES
A better model of coverage for employees- Industry: Engineering Firm
Employer had a group term life for all employees. Carved out employees earning $100,000 or more (52 participants).
Benefit design: two (2) times salary to $1,000,000
Portable without no changes. No reductions at 65, 70 or 75. Group insurance rate reduced.
Create more coverage - Industry: Law firm
The group term coverage could not deliver enough death benefit.
Partners in the law firm: 91
Partners provided $3,000,000
Replace current plan. Obtained lower cost and better provisions. Industry: Hospital
The hospital had a group variable universal life program which was confusing and and administration nightmare. Portability restrictions caused liability concerns.
Changed to Executive UL
Lower premium (15% a year)
5-year rate schedule guarantee
Corporate needs - "Individual" policy type allowed for corporate ownership. Industry: Investment Firm (36 participants)
Fund their existing stock redemption plan.
Insured: Employee and Stockholder
Able to ensure a specific formula up to a maximum of $1,750,000
Able to provide increases in coverage
Executive Planning and Benefits
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