COIL Institutional Seriessm
With COIL Institutional Seriessm, corporations and businesses of all other entity types can own and benefit from a life insurance policy that offers the opportunity for growth by allocating the premium payments to a variety of investment options.
November 18, 2019
Why choose COIL Institutional Seriessm?
Your business owner policyholders can use this policy for life insurance protection, as well as to informally fund non-qualified deferral plans, such as supplemental executive retirement plans (SERPs) or business-sponsored benefit plans, such as executive bonus plans. It is institutionally priced with enhanced cash surrender values in years 1-14, resulting from a refund a portion of the premium expense and administrative charges, available upon full surrender.
COIL Institutional Seriessm also offers these benefits:
- Added flexibility with the Integrated Term Rider
- Over 80 investment options to choose from, including the innovative Market Stabilizer Option® 1
- Dedicated support from Equitable’s Corporate Strategies Group
Optional Riders available for an additional charge:2
- Integrated Term Insurance Rider (charge only if exercised)
This rider provides for additional coverage on each insured within a given case. The term insurance benefit provided by the ITR is the difference between the total death benefit and the base policy death benefit. There is a separate per $1,000 of ITR Face Amount administrative charge, and separate cost of insurance charges for coverage under the ITR.
- The minimum ITR Face Amount at issue is $50,000 per insured.
- The ITR is available at up to 90% of the Target Amount (base policy face amount plus ITR face amount) for any individual life policy with a Target Premium of $50,000 or a case with a Group Target Premium of at least $50,000.
- The Target Premium is the Commissionable Target Premium (CTP) resulting from blending ITR and base policy coverage. The Target Premium after blending in term coverage must remain at least $50,000. The target premium for each policy depends upon the Base Policy Face Amount and the age, sex, and class of risk of the insured. The ITR face amount does not contribute towards the target premium.
- Market Stabilizer Option® (charge only if exercised)
- Policy Continuation Rider (charge only if exercised)
- Integrated Term Insurance Rider (charge only if exercised)
Financial Professional materials
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Prospectus and Supplements
Business policyholders can choose from over 80 investment options, ranging from equity and bond funds to sector and specialty options, asset allocation, and risk management strategies – and access many of the nation’s most respected money managers.
- Diversification Strategies - Reduce fluctuations by diversifying by asset class or management style
- Market Stabilizer Option® 1 - Take advantage of growth opportunities and help protect against market declines
The Market Stabilizer Option ("MSO") is an investment option that offers a rate ties to the performance of the S&P 500® price return Index (which does not include dividends). The MSO allows your clients to participation the limited upside performance potential of the S&P 500® Price Return Index up to a growth cap rate that is set each month by the insurance company. It also provides limited downside protection against declines of up to -25% in the performance of the S&P 500® Price Return Index. There is a risk of substantial loss of principal because your client agrees to absorb all the losses from the portion of any negative index performance that exceeds -25%. The MSO has a 1.15% charge with a maximum of 2.40%.
- Index Portfolios - Your clients can participate in well-diversified portfolios with market performance while minimizing costs. They can select a single index option or use our wide selection covering the asset classes they need to build an index strategy to match their risk tolerance.
- Asset Allocation Portfolios - Clients can match their risk tolerance with traditional asset allocation portfolios ranging from conservative to aggressive. All our asset allocation portfolios are broadly diversified.
- Equity and Fixed Income Portfolios - For your clients who prefer a more actively managed strategy, they have access to more than 80 equity and fixed income options from some of the most respected money managers in the world.
COIL Institutional Seriessm in action
COIL Institutional Seriessm is specially designed to help companies provide non-qualified deferred compensation plans (NQDCs), Supplemental Executive Retirement Plans (SERPs) and other non-qualified benefit plans. Below are a few examples of how these types of plans may fill the gaps in your policyholders' compensation package:
|An executive is deferring the maximum amount into his 401(k), but it amounts to less than 5 percent of his annual compensation. He wants to defer at least 10 percent.||NQDC allows deferrals of up to 100 percent of an executive's salary.|
|Your policyholder wants to reward her key executives in a way that won't add to their already considerable current income tax burden.||A SERP allows her to promise her executives future benefits without them having to pay income taxes today.|
|Your business-owner policyholder wants to tailor rewards to the class of executive.||A NQDC plan allows him to match, for example, 100 percent of the deferrals on one level of executives and match 50 percent of the next level. Because it's non-qualified, your policyholder makes that decision.|
|The success of your policyholders' company is dependent on her key executives. She needs a way to retain them.||A SERP that promises substantial benefits at retirement may be the "golden handcuffs" she needs to keep her key executives where they are.|
Requirements for Issue
The policy is designed to be offered to corporations or other business entities for employer-sponsored non-qualified plans. The policy is anticipated to be used to fund deferred compensation plans but could also be used in applications such as multi-life split-dollar or executive bonus plans – as well as sales to members of professional associations.
The policy may be offered under either of conditions 1 or 2.
- The policy will be offered to corporations and other business entities that meet the following at issue:
- The policies are employer owned or are employee owned in non-qualified benefit plans sponsored by the employer; and
- The persons proposed to be insured are deemed by us to be “highly compensated” individuals; and
- The policies are issued as part of a “case” with a minimum of 2 different lives with aggregate annualized first year planned periodic premium for the case of at least $100,000 or an initial premium of at least $300,000.
- The policy will be offered to members of a recognized professional association of at least 500 members formed for a bona fide purpose other than the purchase of life insurance provided the following condition is met at issue:
- The annualized first year planned periodic policy premium is at least $50,000 or the initial policy premium is at least $150,000.
Sales to association members would not be in the context of the association being the sponsor of a non-qualified benefit plan for their members. Members of the association who purchase this policy do so as part of their individual protection and retirement planning. Please note that the member would not be an employee of the association nor would the association be the owner of the policy. The policy must be issued to the member who is the policy owner, any trust created by the member, or any other party that has an insurable interest in the member.
A Third Party Administrator (TPA) must be named for all COIL Institutional Seriessm cases.
1 The Market Stabilizer Option® is not available in NY.
2 All riders are subject to the terms and conditions of the rider. All riders may not be available in all jurisdictions. Some states may vary the terms and conditions. There may be an additional charge associated with obtaining certain riders. Some riders may not be available in combination with other riders and/or policy features.
Please be advised that this webpage is not intended as legal or tax advice. Accordingly, any tax information provided in this guide for producers is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer. The tax information was written to support the promotion or marketing of the transaction(s) or matter(s) addressed, and clients should seek advice based on their particular circumstances from an independent tax advisor.
COIL Institutional Seriessm is issued by Equitable Financial Life Insurance Company and is co-distributed by Equitable Advisors, LLC (Member FINRA, SIPC), and Equitable Distributors, LLC, all located at 1290 Avenue of the Americas, New York, NY 10104.
COIL Institutional Seriessm Insurance is sold by prospectus only. The prospectuses for COIL Institutional Seriessm Insurance contains more complete information about the policy, including investment objectives, risks, investment management fees, charges, expenses, limitations and restrictions. You and your clients should read the prospectuses and consider the information carefully before purchasing a policy or sending money.