Peachtree LBP Finance Company is trying to sell corporations on the idea of using loans to turn life insurance programs into alternatives to other types of executive benefits programs.[@@]

Peachtree, Norcross, Ga., an affiliate of Peachtree Settlement Funding L.L.C., says its new Leveraged Bonus Program system will use premium financing arrangements to turn life insurance programs into funding vehicles for Section 162 bonus plans and into alternatives to traditional voluntary deferral programs, 412(i) plans, split-dollar plans and traditional 401(k) plans.

Under current tax laws, an LBP program can provide tax-free distributions and give participants access to their money before retirement, Peachtree says.

The LBP loan at the heart of the program is non recourse, has no personal guarantee and involves no individual financial underwriting or credit-reporting requirements, Peachtree says.