TYPES OF EXECUTIVE BENEFIT PLANS

Effective
FUNDING STRATEGIES

Driving growth through smart benefit funding options

Most companies believe their greatest financial challenge is the amount of tax they pay. At Todd, we see it differently: It’s not the tax, but rather the lost opportunity due to the sum of taxes paid, that costs businesses most in the long run.

The Todd Organization helps companies avoid taxes and improve earnings by first retaining, and then redeploying funds to create a greater return on capital over the years. And we do that better than any other advisory team in the business.

Todd’s team of professionals are well versed in compliance and regulatory issues that surround benefits funding. We take a very targeted and individualized approach to corporate funding strategies, using a variety of options.

COLI

COLI, or Corporate Owned Life Insurance, provides attractive tax advantages that create greater earnings, while allowing companies to fully recover the cost of employee benefits programs. A no-cost asset for corporations, COLI offers purchase-and-loss neutrality along with several key benefits:

  • Tax-advantaged cash value accumulation
  • Tax-free withdrawals and loans
  • Tax-free death benefits

For COLI policies, the employer is the purchaser, beneficiary and owner. The corporation is either the total or partial beneficiary on the policy, with benefits payable either to the employer or directly to the employee's named beneficiary.

OWNERSHIP

Company owned asset

FUNCTION

Used by corporations as part of a funding strategy

BENEFITS

 Helps Companies:

  • Boost earnings
  • Fully fund benefits programs
  • Create tax advantages

Since our Founding, The Todd advisors have placed more than $4 Billion of COLI & BOLI Coverage

SECURE YOUR FINANCIAL FUTURE. CONNECT WITH THE TODD ORGANIZATION TODAY.

BOLI

BOLI, or Bank Owned Life Insurance, generates non-taxable other income, and when held to maturity, all returns are tax-free. It is an excellent vehicle for financing the rising cost of executive benefits and other employee benefit costs. Unlike other bank-eligible investments, BOLI can provide enhanced earnings without the negative consequences associated with interest rate fluctuation.

BOLI policies insure the lives of a group of bank employees (usually officers) and/or directors. The financial institution pays the premiums on BOLI policies, owns the policies and is the beneficiary of both the increase in the policies’ cash value and the death benefits.

Why BOLI

  • Offsets the rising costs of employee benefits
  • Grows without tax – a smart investment
  • Creates tax-free earnings

WHY TODD

At Todd, we utilize a full-service approach: Our organization works with alongside our clients with our strategic partners to help clients navigate the compliance process by providing:

  • A thorough pre-purchase process analysis of every BOLI program
  • Institutional implementation and delivery
  • Ongoing regulatory and legislative compliance reporting

OWNERSHIP

Bank owned asset

FUNCTION

Used by banks as part of tax-management and long-term growth strategy

BENEFITS

 Helps Banks:

  • Improve earnings
  • Reduce Risk
  • Retain top employees

TODD SETS THE INDUSTRY STANDARD

Unlike other advisors, Todd has access to every carrier in the BOLI market. Our firm managed the earliest BOLI transactions more than 60 years ago, offering unmatched breadth of knowledge, experience and expertise that pays big dividends for our clients.

BOLI IS AN ATTRACTIVE INVESTMENT OPTION FOR BANKING INSTITUTIONS OF ALL SIZES

62% of all banks with assets of more than $50 million own BOLI
62%
Two Thirds of banks with more than $161 billion in holdings own BOLI
66%

Start a funding strategy for your business

TAKE THE FIRST STEP TO SECURING YOUR FINANCIAL FUTURE. Contact a Todd Advisor today.

ICOLI

ICOLI, or Insurance Company Owned Life Insurance, is an attractive investment option for insurance companies to offset the costs of executive benefits plans. In addition, ICOLI also allows for a more favorable risk/return position and improved earnings, while meeting regulatory compliance.

ICOLI allows insurance companies to:

  • Improve tax-adjusted earnings
  • Receive favorable risk based capital (RBC) treatment
  • Enhance investment choices

The insurance company is the purchaser, beneficiary and owner of ICOLI policies which insure the lives of select executives. These policies are usually funded with a single premium deposit.

OWNERSHIP

Company owned asset

FUNCTION

Used by corporations as part of a funding strategy

BENEFITS

 Helps Companies:

  • Boost earnings
  • Fully fund benefits programs
  • Create tax advantages

Mutual Fund Based & Derivative Based Strategies

Given the changing tax rate environment, it is important to review and optimize your existing plans—as well as consider other progressive strategies for executive benefits funding. In addition to well-structured BOLI/COLI/ICOLI plans, our experts at The Todd Organization are well versed in other funding options, which may include:

  • Mutual Fund Based Strategies
  • Derivative Based Strategies
  • Long-term Obligations
    • Employee Benefit Cost Recovery
    • OPEB & VEBA Funding
    • Nuclear Decommissioning
    • Pension Risk Transfer