What is Kai-Zen?

Kai-Zen is a strategy that helps you maintain your current lifestyle in the event of a chronic illness, premature death, or an inability to sufficiently save for retirement.  Protecting your earnings is critical to insuring your ability to save for retirement. Due to limitations, traditional retirement plans are typically insufficient for high-income earners. If you want to maintain your lifestyle in retirement, you need a proactive strategy that puts more money toward protecting your future income without putting a drain on your current finances.

Kai-Zen is the ONLY strategy that uses leverage to help you acquire more of the benefits you need to financially protect you and your family. Its unique fusion of financing and life insurance offers you more protections and the potential to earn more for retirement than you could obtain without leverage.

How it Works

The Kai-Zen strategy is simple. Premiums are jointly funded by bank financing and the participant or employer. The bank financing provides the majority of the total contribution to the plan, and the life insurance policy itself is the full security for the loan.  This strategy is specifically designed so that the participant is not required to go through financial underwriting or sign any loan documents.  As an additional protection, Kai-Zen’s structure is also set up to protect your benefits in the event of employer bankruptcy.

By using bank financing, the Kai-Zen strategy allows you to realize benefits beyond your expectations while keeping contributions within your means.

piggy banks

This concept is not much different than financing a house – you use a mortgage to leverage the assets you have on hand to buy more house than you could afford on your own.  Money is borrowed to buy more house, or with Kai-Zen, more benefits.  With Kai-Zen, you are buying a life insurance policy with a larger death benefit, more living benefit protections, and the potential for more cash accumulation without the risk of losses (due to declines in a market index).

As you can see from the chart below, the addition of bank funding gives you the potential to significantly enhance the funds available for benefits.


Example: Self Funded vs. Kai-Zen

Do You Qualify?

The Kai-Zen strategy was designed for executives, business owners, and professionals who:

Are 55 or younger – to achieve the best revenue flow plus the Death Benefit and Living Benefits
Are 65 or younger – to achieve the Death Benefit and Living Benefits
Are in standard or better health
Employed and earning at least $100,000 per year but ideally $250,000*
*Some carriers require a verification of net worth to qualify

Business Applications

The departure or premature loss of a key executive can significantly affect a company’s bottom line. The Kai-Zen Strategy helps provide the additional funding required to address the following business situations effectively:

  • Executive Bonuses
  • Buy/Sell
  • Key Man
  • Partner Buyout
  • Succession Planning
  • Highly Compensated Employee Incentives

Click here to learn more about why companies choose to use Kai-Zen.