PLATINUM SECURITY PLAN™
Designed by bankers. For bankers.
How a Bank can implement a Platinum Security Plan™ for a 47-year-old executive.
Efficient use of the Bank’s capital
- Executive compensation indexed: 2% (or bank compensation rate)
- Plan is an asset on balance sheet.
- Plan provides Statutory protection for executive retention.
- Bank can have full cost recovery at executive’s retirement.
- Policy transfers to executive at retirement with taxes already paid.
How a bank can implement a Platinum Security Plan™ for an executive nearing retirement age.
Efficient use of the Bank’s capital
- Bank wants to provide executive – who is 1 to 2 years from retirement – with a supplemental retirement income benefit.
- Platinum Security Plan™ utilizes an exclusive and proprietary technique regarding BOLI policies.
- Retirement income amount is now indexed to executive’s retirement goal and expected mortality.
- Plan cash value is an asset of the bank.
- BOLI interest income continues to accumulate as a credit to income.
- Upon retirement at age 72, executive starts to receive an annual income that can be net of tax.
- Bank asset retained.