Broker Check

State of the Art Leveraged Benefits

Kai-Zen and Tri-Zen Strategies

Simply using funding from the participant and/or the employer and leveraging bank financing these proactive strategies offers the potential to earn more for retirement than you could on your own and more protections in the event of chronic illness or premature death.

What's so unique and compelling about these strategies? Participant's contributions are leveraged 3:1.

The bank financing provides the majority of the total contribution to the plan, and the life insurance policy itself is the full security for the loan. This strategy is specifically designed so that the participant is not required to go through financial underwriting or sign any loan documents.


Nearly every study indicates that a large percentage of people, including high earners, do not have sufficient money to maintain their lifestyle for the course of their approximately 22 year retirement. Plus, a result of being successful means needing to save even more for retirement over and above what is already in Social Security and qualified plans. Kai-Zen is one of the very few strategies that allows participants to use additional money to give them more benefits than they can save for by themselves.


Attract and Retain Employees by Offering Better Benefits
Key employees are the lifeblood of your company and it is crucial to be more attractive than your competitors. Benefits are necessary to recruit and retain your best employees, but most companies offer essentially the same benefits as everyone else. How do you offer more and set yourself apart? Kai-Zen is a unique strategy that allows you to achieve a competitive advantage by offering the best benefits, provide more protection, and potentially save more for employees' retirement. Simply put, the Kai-Zen Strategy provides you with the extra funding to set yourself apart without having to increase your budget.

More Cost Effective than Traditional Plans
The real reason businesses are not offering additional benefits to their key employees is cost. The Kai-Zen Strategy uses leverage to help cover the costs of additional benefits needed to attract top talent. A unique feature of Kai-Zen is that there are no loan qualifications or loan documents signed by the employer or employee. The contributions made to the strategy act to fully secure the loan. Utilizing Ka-Zen allows companies to spend less on something that would otherwise be a substantial expense. This will ultimately improve your cash flow and decrease costs while offering the differentiation needed to compete for the best employees.

In addition, due to the high costs of benefits, businesses also find it difficult to provide adequate coverage for other business liabilities such as Key Person, Buy-Sell Agreements, Succession Planning, etc. These events can typically be funded at half the cost of traditional options with Kai-Zen.

A Better Way to Fund Contingent Business Liabilities (Key Person, Buy-Sell Agreements, Succession Planning, etc.)
Key Executives leave for a variety of reasons which can leave a business scrambling to cover their loss. They can become disabled, develop a chronic illness, retire, pass away, or simply leave. Most companies use their cash to grow their business and not to fund contingent business liabilities. Kai-Zen helps provide the funding needed to protect business in a wider variety of circumstances.

A Better Way to Informally Fund Deferred Compensation
Kai-Zen is a superior way to informally fund Non-Qualified Deferred Compensation. By financing a life insurance policy as opposed to traditional investment alternatives, you get the added advantage of additional cash through the use of leverage, potential tax-deferred growth, protection benefits should something happen to the employee all without downside market risk.

What is Tri-Zen?
Like Kai-Zen, Tri-Zen is a benefit strategy supplemented 3x by financing where the strategy is sole security for the loan. The difference is Tri-Zen is offered on a pre-tax basis and is suitable for C Corporations and not-for-profit organizations. Consequently, it allows employers to offer the ideal benefits for their key personnel and highly compensated employees without increasing costs.

Have a Question

Thank you!