Get More From EOLI

Better Returns … Fast

As a Fortune 500, odds are you have over $1 billion USD invested in COLI or BOLI instruments.  Our EOLI analysis will help you increase your returns by 10-20% annually, or the analysis is on us.

What is it?

Enterprise-owned life insurance (EOLI, COLI, BOLI) plans help U.S. based enterprises . . .

  1. Realize share-price-relevant revenues for shareholders
  2. Offset deferred compensation plans for senior executives
  3. Fund employee benefit programs

Traditional individual-owned life insurance policies are designed to protect beneficiaries named by an individual policy holder in the event of the premature death of the insured – often the policyholder.  Enterprise-owned life insurance (EOLI) works similarly, except the premiums are funded by the enterprise, who subsequently enjoys related gains tax-free.  And in contrast to annuity-funded retirement programs, EOLI investment also creates an additional source for temporary loans for the corporation.  The financial benefits for shareholders, executives, and employees can be significant.

A given life insurance policy (typically a variable life policy form) may require a single pay premium of $1M USD, in exchange for a terminal benefit of $25,000,000.  With variable life policy forms, each policy has an annually increasing cash value, which is an income-producing asset from the time the premium is paid.  The cash value of the policy may be borrowed, used as collateral, or invested in a variety of stocks and bonds. For U.S. corporations, gains resulting within life insurance policies accumulate tax-deferred, significantly enhancing the potential return on investment.  Ultimately, the final benefit payment of $25,000,000 is received tax-free. This income may then be applied to new policies for other employees, and used to fund the current retirement benefits of past executives.

Our Practice

Henry Fleming & Company brings experienced, certified actuaries and deep relationships with the underwriting community to our clients.  We support assessments, deployment, and restructuring for clients with existing EOLI programs.

Proprietary Methods
Our propriety Enterprise-owned Life Insurance Assessment Methodology (ELIAM) includes advanced analytical techniques and benchmarks used by leading underwriters, and based on experience designing such products for the worlds leading underwriters.

Resources
Our consultants have deep experience designing life insurance programs for some of the world’s leading providers.  They also have experience restructuring EOLI programs for major corporations.

Results
We support the design, development, and implementation of new programs for clients who have to take advantage of this valuable financial instrument.  We also offer assessment and restructuring, which can enhance EOLI-related revenues 10-20% annually, else our assessment services on us.