Comprehensive Capabilities

  The foundation of AWP Life Brokerage is the belief that firms are strengthened by the ability to work in tandem as a unified consortium.  Our specializations include insurance concepts and...


Industry Leader

  AWP has proven continual leadership in delivery of benefits solutions for companies of any size as well as we continue to be a leading enterprise in life insurance planning and...


Institutional Relationships

Institutional accounts are integral to our overall distribution plan.  We define institutions as banks, wirehouses, regional broker dealers, and CPA networks. AWP has acquired recognition as a player in the institutional...


Pioneering Captive Insurance

Introduction Despite the fact that the concept of “captive” traces its origins to the beginnings of formalized trade, many people believe captive insurance companies to be a relatively new phenomenon.  Formed...


Premium Financing

Many affluent clients are aware of the benefits that life insurance can provide.  However, clients often harbor concerns that a substantial income tax liability will result from liquidating low basis...


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Bank Owned Life Insurance (BOLI)

Policies purchased by banks are designed to provide attractive tax-equivalent yields.

 

Life insurance is one of the last remaining long-standing and statutorily regulated risk protection products available.  Policies that are purchased by corporations (COLI), banks (BOLI), and insurance companies (ICOLI) are designed to provide attractive tax-equivalent yields.  The attraction of these yields is possible due to the beneficial tax treatment of life insurance and the efficiency of institutional versus retail life insurance.

 

Policies such as these are purchased on the lives of an employer’s key employees and are used primarily for specialized financing strategies such as follows:


- Insuring for potential economic loss as may arise from premature death of a key employee.

- Hedging and/or funding liability of executive deferred compensation plans.

- Offsetting cost of employer sponsored employee health and welfare ERISA benefit plans.

- Recovering employer’s cost of post retirement employee benefit plans.

- Diversification via tax-deferred investment options alongside traditional taxable investments.

 

Benefits to the policy owner currently include:


- Ability of earnings to hedge liabilities or offset benefit expenses.

- Death proceeds are not taxed.

- Death proceeds can be used for the purpose of recovering benefit expenses.

 

Three broadly defined types of BOLI are available:


General Account – The policy’s cash value account is credited with an insurance company’s declared interest rate.  The declared rate is derived from, although not correlated with, the performance of the insurance company’s general account portfolio of investments.


Separate Account – The policy’s cash value account is credited with the return of (a) bank-eligible separate account investment(s).  The actual rate of return derives from the performance of the investment selected.  The policy is considered a security and is sold by prospectus or private placement memorandum.


Hybrid Separate Account – The policy’s cash value is credited with a separate account investment portfolio’s return (minimum rate guaranteed by insurance carrier).  The policy, a true separate account, is not sold by prospectus or private placement memorandum.