The Kai-Zen Life Insurance Retirement Plan

What Is Kai-Zen?

Kai-Zen is a strategy that allows you to maintain your current lifestyle. The Kai-Zen life insurance retirement plan is an index life insurance policy that provides death benefit protection and living benefits.

These are provided in the event of a serious illness, premature death, or an inability to sufficiently save for retirement.

Working to insure your ability to save for retirement means that protecting your earnings is critical. And the sad fact is, traditional retirement plans are typically not sufficient enough for high-income earners.

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How Kai-Zen Works

The Kai-Zen strategy is straightforward and easy to understand. First, let’s look at the premiums. These are owned by the participant or employer, and they are also owned by bank financing. Bank financing covers the majority of the total contribution to the plan.

The unique part is that the life insurance policy itself serves as the full security for the loan. What does this mean? You don’t have to go through financial underwriting. You don’t have to sign any loan documents. Kai-Zen is strategically designed to protect you. As such, its structure protects your benefits even when the unexpected occurs. Your employer can go bankrupt, for example, and you’ll still be safe.

Contributions are kept within your means even as the realized benefits go beyond your expectations.

It’s true: the most unique and compelling aspect of Kai-Zen insurance plans is that participant contributions are leveraged 3:1.

I Want to Maintain My Lifestyle In Retirement

If you want to maintain your lifestyle into and throughout retirement, you need a proactive strategy. Kai-Zen insurance plans put more money toward protecting your future income. And they do so without putting a strain on your current finances.

In fact: Kai-Zen is one of the few strategies that uses this type of bank leverage. You acquire more of the insurance benefits you need to help financially protect yourself and your family. Kai-Zen is a unique fusion; it brings together financing and life insurance to offer you better protection. It also grants you the potential to earn more for retirement than you could obtain without leverage.

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Frequently Asked Questions About Kai-Zen Plans

The participant should be between the ages of 18-65 and, in most cases, earn over $100,000 annually. Keep in mind: most of the other plans require annual earnings of $200,000 or higher.

This is because of the financing requirements within the Kai-Zen insurance plan. People over 65 don’t have the time to build up sufficient cash within the insurance product. They cannot, then, successfully exit the loan and still have the cash they need for retirement and other eventualities.

Kai-Zen insurance plans are applicable to most Americans earning over $100,000 annually. They are for anyone who requires an avenue above a normal 401k plan to help save for retirement and plan for the future. In situations where traditional deferred compensation is not viable for pass-through entities, it is particularly attractive. The same goes for groups that have maxed out their qualified plans. It can also be a great vehicle for Buy-Sell plans, Key-Man Insurance, Stock Redemption, and Partner Buy Out.

The minimum death benefit for a Kai-Zen plan beneficiary is $1,500,000. There is no maximum. Any death benefit over $1,500,000 can be approved based on three factors: the participant’s income, their net worth, and their current insurance in force.

We sell Kai-Zen both to individual participants and to groups. There are a few benefits to buying Kai-Zen life insurance plans as a group or through your employer. This allows lenders to finance at even more attractive rates. With a large-enough group of related employees, financing can potentially be obtained at lower death benefit amounts. This may make Kai-Zen very attractive to you and to your team.

Often, Kai-Zen participants got a late start in planning for their futures. They need help with saving for retirement. They also need better ways to save above and beyond their 401k plans. Kai-Zen can also work for Key Man Insurance, Buy-Sell, and succession planning within a company.

The easiest analogy to use is to compare Kai-Zen plans to your employer matching contributions to your 401k. Unlike traditional matching, however, Kai-Zen uses lender money. Lender money is used to match your five-year contribution to a life insurance policy. This is done by 3x over a period of a decade. Another important feature to note is financial security. The lender’s money is secured by the policy itself. The loan is paid off using cash from the life insurance product. Then, the policyholder can access supplemental income and other living benefits. This access is granted through policy loans. 

Kai-Zen gives participants the ability to purchase more life insurance benefits than they normally would be able to on their own and only requires five annual contributions instead of paying premiums for life as with most insurance products.


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