The  Top Three Objections to the Tax Free Matching Program (Kai-Zen)

(Click links below to jump to item.)

1. Loans are risky

2. No growth and rising interest rates

3. Insurance policies are expensive

1.  Loans are risky.

First, you are not taking out a loan.  No loan docs. No credit check. You have no liability for the bank loan. 

Both you and the bank are depositing money with an insurance company. The insurance company is providing minimum guarantees to both you and the bank.

The bank has a collateral assignment on the policy. This means the banks can only access their money, not yours. 

This is different from an absolute assignment which means control.  The bank does not control your policy. Your policy is controlled by your trust which you own.

What’s your risk?  If you do not make your 5 payments. The bank can pull out their capital. 

 In 22 years we have facilitated $6billion in loans. Compare the difference of the Kai-Zen 3 to 1 matching structure below.

2.  What if the market doesn’t go up and interest rates rise?

The bank takes no interest payments for 15 years.  There are no interest payments coming out of the policy. This means fluctuations in short term interest rates will have no affect on policy growth. There is no drain or interest rate cost coming out.

The money inside the plan is allowed to continuously compound without interruption. The 15 year time frame was designed because through rigorous stress testing, you cannot find a 15 year period where the interest earned does not outperform the bank interest. This includes the high interest rate 1980’s.

For the growth side, the insurance companies use call options for growth. They provide upside potential without the downside risk. 

 New option strategies have no caps and even offer the ability to lock in gains any time during the year.  

 Older life policies only had capped strategies.  Many negative articles on the internet still point this out using old data from 10 years ago. (This is like comparing an old cell phone to an Iphone.)

 Once interest is locked, it cannot be lost in future years due to market downturns. 

 If the market is down, there is a “0%” floor. No interest is earned. No market losses incurred. 

 When the market is down for the year, a new option is purchased at the lower market level to capture gains when the market goes back up.

 This process of locking in gains and buying new options when the market is down has achieved steady returns in both bull and bear market cycles. 

 Overall market crashes are great opportunities in this strategy using the uncapped options to capture market rebounds.

 When interest rates rise, the growth potential of the policies go up.  The insurance company can then increase the amount of options they purchase so there is greater upside.

 Stress testing through the high interest rate 1980’s still shows substantial income produced from the plan.  Distributions are tax free as well.

3. Insurance policies are expensive. 

Many are. Off the shelf whole life policies and indexed life policies are expensive. 

This is neither of those. This is a hybrid blend of term insurance and indexed life insurance with 75% of the funding provided by a bank partner.

Using this proprietary blend, long term costs average less than 1% and will cost 6 times less over time than the average brokerage account with a 1% fee and provide 3 times the distribution.

Additionally, the plans have reduced up front commission to agents by 70% and compensation is spread over 10 years. This provides incentive for the ongoing service of maintenance of the plan while reducing costs.

Overall, conservative estimates and stress testing show Kaizen plans to have the potential for a 1500% return on invested capital, net of fees, through the lifetime distributions, tax savings and residual death benefit paid to heirs.

Estimate your tax free income…

Schedule a 15 minute demo walkthrough:

• Estimate your tax free income numbers.

• No Sales Pitch. 15 demo walk-through via zoom.

• Access comprehensive resources and review plan details on your own without any pressure.

• Gains “Lock In” every 12 months and cannot be lost in future years due to market downturns.

• Fees average 1% or less over time