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Executive UL

Executive UL

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.

[ key facts ]

Insurer

Executive UL

[ 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

$1,000,000

Age 40 50 60
Male $641 $1,277 $3,257
Female $605 $1,145 $2,849

[ Sales Opportunities ]

Executive Sample Cases

Opportunity:
Carve Out

A better model of coverage for employees

Industry:
Engineering Firm

Employer had group term life for all employees. Carved out employees earning $100,000 or more (52). Benefit design: two (2) times salary to $1,000,000.

Portable without changes. No reductions at 65, 70, or 75. Group insurance rate reduced.

Opportunity:
Create More Coverage

Obtaining more death benefit

Industry:
Law Firm

The group term coverage could not deliver enough death benefit. Partners in the law firm (91).

Partners provided $3,000,000.

Opportunity:
Replace Competitor Plan

Obtaining lower cost and better provisions

Industry:
Hospital

The hospital had a group variable universal life program. Confusing and an administration nightmare. Portability restrictions caused liability concerns.

Changed to Executive UL:

  • Lower premium (15% a year)
  • 5-year rate schedule guarantee

Opportunity:
Corporate Needs

“Individual” Policy type allowed for Corporate Ownership

Industry:
Investment Firm (36)

Fund their existing stock redemption plan.

Owner: Employer
Insured: Employee and Stockholder
Beneficiary: Employer

Able to insure a specific formula (up to a maximum of $1,750,000). Able to provide increases in coverage.