Permanent life insurance
Credit unions often invest in specialized programs, institutionally-priced permanent life insurance policies on the lives of their executives for up to 25% of net worth, in most jurisdictions.
Permanent life insurance has both a cash value and a death benefit. These particular policies are designed to maximize current cash value growth while protecting the credit union should an executive pass away.
While the insured executive is living, the current yield on cash value can far exceed that of other safe/liquid assets. When the insured passes away, a death benefit is paid and can be used to:
- Provide a benefit to the insured’s beneficiaries
- Recover the cost of supplemental retirement benefit plans
- More efficiently offset other benefit expenses