Fund Contingent Business Liabilities

To Attract the Best, You Need to Offer the Best

Attract and Retain Employees by Offering Better Benefits

Key employees are the lifeblood of your company and it is crucial to be more attractive than your competitors. Benefits are necessary to recruit and retain your best employees, but most companies offer essentially the same benefits as everyone else. How do you offer more and set yourself apart?

Kai-Zen is a unique strategy that allows you to achieve a competitive advantage by offering the best benefits, provide more protection, and potentially save more for employees’ retirement. Simply put, the Kai-Zen Strategy provides you with the extra funding to set yourself apart without having to increase your budget.


More Cost Effective than Traditional Plans

The real reason businesses are not offering additional benefits to their key employees is cost.  The Kai-Zen Strategy uses leverage to help cover the costs of the additional benefits needed to attract top talent.  A unique feature of Kai-Zen is that there are no loan qualifications or loan documents signed by the employer or employee. The contributions made to the strategy act to fully secure the loan.  Utilizing Kai-Zen allows companies to spend less on something that would otherwise be a substantial expense.  This will ultimately improve your cash flow and decrease costs while offering the differentiation needed to compete for the best employees.

In addition, due to the high cost of benefits, businesses also find it difficult to provide adequate coverage for other business liabilities such as Key Person, Buy-Sell Agreements, Succession Planning, etc. These events can typically be funded at half the cost of traditional options with Kai-Zen.

A Better Way to Fund Contingent Business Liabilities (Key Person, Buy-Sell Agreements, Succession Planning, etc.)

Key executives leave for a variety of reasons which can leave a business scrambling to cover their loss. They can become disabled, develop a chronic illness, retire, pass away, or simply leave. Most companies use their cash to grow their business and not to fund contingent business liabilities. Kai-Zen helps provide the funding needed to protect your business in a wider variety of circumstances.


A Better Way to Informally Fund Deferred Compensation

Kai-Zen is a superior way to informally fund Non-Qualified Deferred Compensation. By financing a life insurance policy as opposed to traditional investment alternatives, you get the added advantage of additional cash through the use of leverage, potential tax-deferred growth, protection benefits should something happen to the employee all without downside market risk.



*Receipt of benefits depends on rider and meeting certain qualifications and varies by state. The use of one benefit may reduce or eliminate other policy and rider benefits. Payment of living benefits will reduce the cash value and death benefit. Substantial tax ramifications could result upon contract lapse or surrender.
Surrender charges may reduce the policy’s cash value in early years. It is possible that coverage will expire when either no premiums are paid following the initial premium, or subsequent premiums are insufficient to continue coverage. The Tri-Zen Strategy is dependent on the employer making contributions for the first 5 years and not defaulting on the policy, which could result in policy lapse and surrender charges. The employee will not have access to the policy, the cash values, the death benefits or the living benefits until the loan is repaid and the assignment is released. The lender has the right to discontinue funding new premiums, exit the market, or to demand loan repayment based on the terms and conditions signed by the Master Trust. See the Master Trust documents for additional information. Receipt of accelerated benefits may be taxable and may affect eligibility for public assistance programs. This information is not intended as tax advice. Please consult with your tax advisor regarding your own situation. Not all riders are available by all life insurance companies.