Credit unions often invest in specialized, institutionally-priced permanent life insurance policies on the lives of their executives for up to 25% of net worth, in most jurisdictions. Permanent life insurance has both a cash value and a death benefit. These particular policies are designed to maximize current cash value growth while protecting the credit union should an executive pass away. While the insured executive is living, the current yield on cash value can far exceed that of other safe/liquid assets. When the insured passes away, a death benefit is paid and can be used to:
- Provide a benefit to the insured’s beneficiaries
- Recover the cost of supplemental retirement benefit plan
- More efficiently offset other benefit expenses
Additionally, specialized programs for credit unions have four main benefits.
Earn a higher current yield compared to other conservative safe/liquid assets without sacrificing safety or liquidity, and acquire life insurance protection on key people. As interest rates rise, so do the yields on these policies.
Attract, Reward and Retain Key Employees
Retain top talent by installing a non-qualified executive retirement plan. If you already have a 457(f) or split-dollar plan, we can provide increased flexibility and better economics for both the credit union and the executives.
Improve Credit Union-Owned Life Insurance
Maximize yields and performance of your existing CUOLI with policy audits and upgrades to the most efficient contracts.
Comply With FASB ASU 2016-01
CUOLI is ideally-suited to comply with the new FASB update because it minimizes investment volatility and is backed by some of the world’s strongest insurance
At Grant, Hinkle and Jacobs, we have increased net yield between 50%-200%, have raised net income in retirement by 20%-40% and have improved performance in CUOLI by 50%-100%.