Protecting earnings is important for high-paid workers who want to save for retirement. Traditional retirement programs are typically inadequate for high-income earners due to restrictions. If highly paid professionals want to preserve their lifestyle in retirement, they’ll need a proactive plan that allocates more funds to potential income protection without depleting current assets.

Kai-Zen is a technique that uses an index life insurance policy to help clients sustain their present lifestyle in the event of a major illness, premature death, or failure to save enough for retirement. Kai-Zen is one of the few tactics that employs leverage to assist clients in obtaining more of the insurance benefits they need to secure their financial futures. Kai-unusual Zen’s combination of funding and life insurance provides more benefits and opportunities for retirement income than could be obtained without leverage.


  • Compared to self-funded alternatives, supplementary retirement income is 60% higher.
  • The average fees are smaller than those charged by most benefit plans.
  • Future earnings are unaffected, as are increases in capital gains tax.
  • Provides additional critical protection(s) against life’s future hazards, such as critical and chronic disease.
  • Unlike most other options, the loan is backed entirely by the cash value of the program, which ensures there is no loan underwriting or liability outside of the plan itself. Stress tested to survive Great Depression or high-interest rate scenarios
  • Profile of the Client

Client Profile

  • Personnel under the age of 65 who are well paid
  • Earnings of $200,000 or more per year*
  • Standard or better health *If the employer pays the premium, $100,000 per year would be considered on a case-by-case basis.

Kai-Refund Zen’s Policy

A trustee/administration fee of $1,350 per year for 5 years is included in the Kai-Zen program’s client contribution section. If the trust has been established, all Trustee and Administration Fees are non-refundable. The fees include the initial trust setup, including the master trust, as well as the insurance trust and loan’s continuing trustee and administration fees. Any amendments to the trust, as well as any additional services performed beyond the scope of the regular transaction, are the sole responsibility of the trust’s settlor and are non-refundable until the service(s) has been completed. The five-year fees cover the trust/service/administration expenses for 15 years. If the trust survives the 15th year, the settlor of the trust is solely responsible for any remaining trustee fees.

Partially funded insurance premiums are included in the client contribution. Even if you contribute to the insurance trust, no life insurance will be effective until the insurance company issues the policy, and no death benefit will be paid to your heirs until the insurance company issues the policy. The insurance policy will not be issued directly after you make a donation to the insurance trust; instead, it will be issued after the Kai-Zen Trust closes a loan to partly cover the premiums for the life insurance policy (ies). It could take up to 6 months for the policies to be closed and issued after you make your donation (s). The carrier usually offers a 30-day free look period after the policy has been charged and put into effect, during which a client may cancel their policy. Additional carrier instructions on the free look span can be found on the insurance diagram or in your contract. The bank fees and interest are not included in this figure.

Interest and Bank Fees Except during the insurance policy free look period, the bank interest and fees paid by the bank after the loan has been set up are non-refundable. The bank is making a loan, and even if the policy is cancelled, the loan interest and fees must be repaid to the bank from the policy’s cash surrender value.

When paying monthly rates, the last month’s premium will be charged in advance to allow for a month’s grace period if a payment is delayed or a dispute about charges arises. A portion of this amount can be refunded if the above criteria are met.

Please get in touch with me if you have accounting and financial services.