ICOLI offers insurance companies a tax-efficient way to offset employee benefit costs while gaining favorable risk-based capital treatment, but is it really as advantageous as it seems? This article breaks down the mechanics, regulatory treatment, and real-world applications of ICOLI, helping insurers assess whether this strategy is a financial game-changer or just another industry trend.
ICOLI is a capital and tax-efficient tool that insurance companies use to generate stable, long-term income. In this Q&A, VP of Consulting Dave Gagnon addresses questions about ICOLI and provides insight into the role it plays in the insurance industry.
These tax tables are designed to offer a quick summary of tax brackets and taxes for: personal income, capital gains, children, and both employer and personal retirement plans.
In short, BOLI is a tax-efficient method banks use to generate additional income as a means to offset employee benefit expenses. In this Q&A, VP of Consulting Dave Gagnon addresses questions about BOLI and provides insight into the role it plays in the banking industry.
Principal John Gagnon discusses changes occurring in the Bank Owned Life Insurance market and shares which drivers he believes may be responsible for this increased activity, as well as how carriers are responding to BOLI momentum.
Because of the restrictive nature of the 457 rules and the addition of 21% excise tax under Section 4690, many tax-exempt organizations have looked to split-dollar life insurance as an alternative way of providing executive retirement benefits.
The more pervasive objection to BOLI is philosophical in nature and generally relates to the discomfort of receiving death benefit payments on the lives of current or former employees. This creates a misconception that the bank is profiting on the death of an executive.
Split Dollar arrangements offer an array of attractive planning opportunities for companies to provide meaningful benefits to key executives. In this video, Principal John Gagnon, answers the question “What is Split Dollar Insurance?” and discusses the components, process and reasons why companies choose to implement a Split Dollar arrangement.
How will BOLI react in a rising interest rate environment? At the start of 2021, banks faced several challenging economic conditions including declining net interest margins, lower asset yields, and excess liquidity.
NQDC plans can solve for shortfalls in savings for highly compensated employees and provide retirement preparedness equity to those who have already maxed out their qualified plans limits. They do this by helping these individuals save beyond the limitations imposed by the IRS on qualified plans.