Professional Security Plan

What is the Professional Security Plan (“PSP”) ?
A tax-efficient wealth accumulation vehicle tailored specifically for executives of S-corporations, partnerships, and not-for-profit entities. It offers the opportunity for tax-deferred investments and the benefit of non-taxable distributions through the use of a corporate-sponsored variable universal life insurance (“VUL”) policy

Why the PSP?
Many executives are looking for an alternative tax-efficient investment vehicle that would allow them to defer money above qualified plan limits but also provide a level of protection against corporate creditors.

What are the key benefits of the PSP?

  • -Company contributions are tax-deductible
  • -No accounting or administration responsibility for the company
  • -Portable (owned by the Executive) and secure from general creditors
  • -Tax-deferred investment growth and non-taxable sub-account reallocations
  • -Non-taxable retirement distributions
  • -Non-taxable death benefit payable to Executive’s beneficiaries
  • -Tax-restoration loan (ALR) allows the Executive to recover taxes paid on pre-tax compensation
  • -High early cash surrender values that can exceed 100% of premiums paid
  • -Volatility protection with an Enhanced Surrender Value Rider (ESVR) – no surrender charges
  • -60+ investment options through VUL “sub-accounts” and has a fixed rate option