Leveraged Income
Strategy (Kai-Zen)
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Overview:
Kai-Zen is a financial strategy that uses bank financing and life insurance to help people accumulate their wealth for retirement and protect their income.
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How it Works:
The participant, employer, or both jointly fund the premiums for a life insurance policy with bank financing. The bank Financing provides most of the total contribution, and the policy serves as collateral for the loan.
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Benefits:
Kai-Zen can help people maintain their lifestyle in retirement, even if they have a chronic illness, die prematurely, or don't have enough retirement savings.
It can also help high-income earners who may not be able to take advantage of traditional retirement plans.
Kai-Zen offers tax-free retirement income, protection from stock market risk, and death and living benefits. It's designed to withstand market declines and rising interest rates.
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Eligibility:
Program requirements include being between the ages of 18 and 65, having a normal to good health, and having an income of at lease $100,000 per year if the plan is corporately sponsored, or $200,000 per year if it's individually funded.
