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
[ 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:
Accounting 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 (84).
Partners provided $5,000,000.
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.
Changed to Executive UL:
Opportunity:
Corporate Needs
“Individual” Policy type allowed for Corporate Ownership
Industry:
Investment Firm
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 $1,800,000) to 36 employees. Able to provide for future benefit increases
.