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Kai-Zen Offers SVS Members Chance to Accumulate Additional Assets
Through its Affinity Program of expanded benefits, SVS is offering access to a strategy that not only provides protection for members’ families in the event of early death or chronic illness, but also leverage that results in up to 60 percent more protection and 60 percent more supplemental retirement income.
With Kai-Zen, a lender provides most of the funding for 3:1 leveraging, bringing in substantial new money. Kai-Zen helps customers maintain their current lifestyle in the event of chronic illness, premature death or insufficient retirement savings. It combines financing and life insurance, with premiums jointly funded by bank financing and the participant or his or her employer.
NIW Companies created this very exclusive product which, before 2012, was offered only to clients with a net worth of more than $10 million. SVS is now able to offer Kai-Zen to members earning an annual income of at least $200,000.
With Kai-Zen, the life insurance policy provides the full security for the loan. Customers do not undergo financial underwriting or sign any loan documents, and benefits are protected in the case of employer bankruptcy.
Here is an example of how it works:
The participant puts in $30,000 a year.
For the first five years, the bank will match that $30,000.
After that, the bank will put in $60,000 years 6-10.
In five short contributions, this person has a financial plan that will buy him or her more death benefits, more living benefits and more accessible cash, but the participant doesn’t have to pay it back for 15 years. Participants get the use of all the money, yet the customer puts in only $150,000 while the bank puts in $450,000.
The plan has been stress-tested via historical data, through good years and bad. NIW and the lenders have been using these strategies for 17 years, and more than 99 percent have remained active participants, NIW Companies officials said.
For more information on Kai-Zen, contact Mark Blocker at Mark@nationalaffinity.net or call 855-533-1776.
Purchasing a product through the expanded SVS affinity program benefits not only you and your practice, but also SVS itself.