For High-Income Earners
A short introduction to the strategy and who it's built for.
Phil Mylet and Marty Willenborg walk through the benefits of Kai-Zen IULs. (19 min)
Kai-Zen combines Indexed Universal Life (IUL) insurance with third-party premium financing. Bank financing at a 3:1 ratio buys you a larger policy, with bigger death benefits, living benefits and cash value. Against a traditional plan, that can raise your retirement income by 60–100%.
You pay 25% of the premiums and a bank funds the other 75%. You put up no extra collateral.
A 0% floor keeps your cash value out of market losses, while the upside tracks market indices.
Draw on the cash value through tax-free policy loans and withdrawals to top up your retirement income.
You pay annual premiums for the first five years, around 25% of the total, plus a small trust fee. The bank puts in the remaining 75%.
The bank keeps funding the full premium, so the policy's cash value grows with nothing more from you.
The policy's cash value repays the bank loan. You carry no personal liability and face no credit checks, and the policy stays as the collateral.
Once the loan is clear, you can draw the cash value as tax-free retirement income, use the living benefits, or leave the death benefit to your family.
Up to 60–100% more tax-free income than a self-funded policy.
Tax-deferred cash value growth and tax-free withdrawals via policy loans.
0% floor protects against market losses, with capped upside tied to indices like the S&P 500.
No credit checks, loan documents, or personal guarantees; the policy is the sole collateral.
Access to death benefits for terminal, chronic, or critical illnesses (where available).
Cash value is generally protected from lawsuits, bankruptcy, or creditors.
Requires an annual income of $150,000+ or minimum $2 million net worth, fairly good health, and ages 18–65.
Requires consistent minimum premium payments of $21,000 for the first five years.
You cannot reach the cash value or benefits until the loan is repaid, usually year 15.
Set up a tax-advantaged wealth transfer for your adult children (18+). Fund a policy while they are young and healthy. It covers them from day one and leaves cash value they can draw on later for a house or college.
Put Kai-Zen policies on key staff and give them a reason to stay for years. It insures the people your business runs on.