Wrapping your current equity funds in ICOLI can increase your yield. Insurance company owned life insurance (ICOLI) is an investment strategy that insurance companies commonly use to wrap their on-balance sheet investments.
Presidential Tax Rate Proposal
With the passing of the COVID-19 relief bill, the White House is now focusing its efforts on the tax plan proposal, scheduled to be on the docket for summer of 2021. This tax package proposes many alterations to the current tax code…
BOLI Market Update – 4th Quarter 2020
Fed Signals Rates Will Stay Low – Purchases Accelerate in Q4 Into the twelfth year of historically low interest rates, and with the Federal Reserve announcing rates will not move until 2023, several headwinds continue to put a damper on bank earnings.
Creating Tax-Free and RBC Efficient Equity Position
High reward, high risk? Insurance companies commonly attempt to increase portfolio yield by increasing allocations to higher risk investments. If the investment performs as desired the associated taxes reduce returns.
How to Minimize Your Risk-Based Capital Reserving
Minimizing your risk-based capital reserving maximizes the amount of capital invested in your portfolio. A common way in which insurance carriers reduce their risk-based capital reserving is by wrapping a portion of their on-balance sheet…
IRC 162(m) | Executive Pay Limits Included in Covid Stimulus Package
The American Rescue Plan Act of 2021 (commonly referred to as the $1.9 trillion coronavirus aid package) includes a provision that will double the number of the highest-paid executives whose compensation in excess of $1 million…
Legislative Update
COVID-19 Relief Bill Corrects Statutory Interest Rates for New Life Insurance Policies Consolidated Appropriations Act, 2021 included an update to Internal Revenue Code Section 7702 (definition of life insurance for tax purposes) interest rates…
BOLI Market Update – 3rd Quarter 2020
Into the twelfth year of historically low-interest rates, and with the Federal Reserve announcing rates will not move until 2023, several headwinds continue to put a damper on bank earnings. While rates remain too low to generate meaningful return…
NDCP | Best Ways to Pay for College
Are Nonqualified Deferred Compensation Plans the Best Way to Pay for College? In the Winter 2020 edition of Defined Contribution Insights (available here) Plan Sponsor Council of America (PSCA) published the first of a two-part…
Supplemental Employee Term Life Insurance
Today’s economic environment and health concerns have many thinking differently about their financial plans. Life insurance has taken on a renewed prominence at the forefront of American’s lives, while providers have been innovating…