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Funding Future Liabilities with OPM
(other people's money)

Imagine the ability to fund for a future liability - retirement, death benefits, estate transfer, business succession, employee pension or OPEB liabilities - using OPM (other people's money).

We do it all the time - we borrow money to purchase houses and cars even though we may have enough money to pay cash. Why? Leverage. We routinely leverage OPM because our own money can be more beneficially deployed in other ways - building businesses, purchasing inventory or investing. Similarly, using financing to pay for insurance is not a new or unique concept and allows for scarce dollars to be put to their highest and best use for optimal return.

The Basics

An ABIL PlanTM transaction is quite simple in design. We have arranged for national and international banks and other lenders to loan money for the purpose of purchasing life insurance policies. These policies are typically, though not always, held in a trust. The policies themselves provide most of the collateral for the loan thus requiring little or no out-of-pocket costs.

With the The ABIL PlanTM interest is usually (but not always) rolled up into the loan thus requiring no annual interest payments. The Plan uses carefully selected insurance products that are designed to grow at a rate faster than the loan. At an appropriate time in the future, generally about 15 years, the policy has enough built up cash value to allow for the loan principle and interest to be paid off while retaining sufficient residual cash value to maintain the policy in place through age 100-120.

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A Whole New Way of Thinking...

  • Health Options PlusTM

    The Health Options PlusTM Health Assurance Plan is a new approach to self funded health plans - going beyond mere insurance to keep employees and their families healthy and keep employer costs low. Employees and Employers typically save 10-30% from fully insured plans.

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  • The Kai-Zen PlanTM

    The Kai-Zen PlanTM takes advantage of the power of leverage (other people's money) to allow business owners, professionals, key employees and others to significantly increase their retirement savings while at the same time providing a significant death benefit in the event their career is prematurely cut short.

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  • The ARC TrustTM

    The ARC TrustTM is an employee benefit trust designed to assist public and private sector employers meet their pension and OPEB funding obligations under FASB and GASB rules. Unlike pension and OPEB bonds, the ARC Trust eliminates the risk of losing principal as a result of negative financial market performance.

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  • The 401Rx Plan®

    The 401Rx Plan® is a turn-key defined contribution retiree health plan designed specifically for small to mid-size businesses and governments. Business owners can contribute and deduct up to $500,000 or more in a single year. Governments can significantly reduce and eliminate their OPEB liability.

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  • The ABIL PlanTM

    The ABIL PlanTM is a wealth accumulation and estate transfer plan designed for businesses owners and other high income & high net worth individuals.

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