Case Study: Construction Company Key-Person Protection
Original Plan:
- Need: $10,000,000 Key-person life insurance to protect the company should something happen to their key executive / sales person
- Original Plan: Purchase $10,000,000 of 10 year level term insurance
- Cost: $30,375 x 10 years = $303,750
Plan Implemented:
- 10,000,000 of institutionally-priced Corporately-Owned Life Insurance (COLI)
- For your review: (1) Case summary (2) NAIC compliance illustration
Benefits to Corporation:
- Immediate balance sheet enhancement
- Increased yield relatively to similarly liquid corporate assets
- Tax-free access to yield
- Cost-recovery at plan maturity
