Corporate-owned life insurance (COLI) arrangements are slowly being replaced by self-owned life and retirement insurance arrangements (SOLAR) that have surged in popularity in recent years mainly because the employee rather than the employer owns the policy, making them a more attractive vehicle for employers to retain top talent.
The arrangements, however, can be elaborate even to agents. So much so that ING has introduced the ING Global Life Concierge Program to offer a “white glove” service to navigate the nuances involved with SOLAR.
The general appeal of SOLAR arrangements are rooted in the current uncertain tax environment. The tax advantages that accompany the product as well as its flexibility are attractive qualities to both employers and employees in the current economic climate.
SOLAR allows employers to pay some or all of the annual premiums which, in many instances are tax deductible for the business. SOLAR arrangements are also attractive to the employee because they provide them with tax-deferred wealth accumulation as well as supplemental retirement income and death benefits.
Logic dictates that executives spending habits will not be much lower when they retire leaving the supplemental retirement income that SOLAR provides increasingly alluring.
ING’s Global Life Concierge program will provide a service to team to help agents and clients plan for retirement income distributions while considering all the necessary tax implications.