Compare a permanent policy with the corporate cash reserve the same dollars would otherwise occupy. Coverage the cash never provides — key-person protection and nonqualified deferred compensation — sits alongside liquidity, not in place of it.
Carrier-silentDesign-silentIllustration governs
For fractional CFOs, strategic business consultants, and referring professionals. Not for clients or consumers.
Advisor discussion
Walkthrough
Use this sequence in the client meeting. Capture the numbers they give you, name the secondary goals, then send one internal proposal request. The client is not emailed.
Open the conversation. Idle cash is fully taxed and earns little. A measured amount can stay liquid and add coverage the cash never provides.
Take the capital position. Current reserve, cash floor, and how much they can redirect each year — without locking the operating account.
Choose secondary goals. Key-person, buy-sell, executive benefits, balance-sheet strength, and/or estate planning sit alongside reserve efficiency. These are planning tags, not design controls.
Name who might be covered. Name, Biological Male or Bio Female, date of birth, and a general-health category. If more than one insured, split the annual premium so the shares add to 100%.
Review the fact-finder. Crossover year, cash-first liquidity, and significance. All illustrative until a complete illustration arrives.
Request a proposal. One internal notification to the practitioner, with goals and covered persons. No client email.
Results
02
Operating Liquidity
Cash is first-line liquidity. Accessible policy value is 80% of cash value. Together they are liquid operating capital. Cash-mix percentages are flags, not table columns.
Cash-first liquidityRemaining cash0.80 × CV
Year
Liquid cash
Accessible policy
Total
Cash vs floor
Total vs floor
Strategy Significance
Scale of accessible policy value against remaining operating capital. This is not a grade. High significance at maturity is the strategy working as intended.
Significance at year 10
—
0.80 × CV / OPCAP · scale, not a pass/fail
Band at year 10
—
Below 20% / 20–67% / above 67%
After-tax reserve yield
—
Deductibility formula — not a sum
Comparison
The comparison values the strategy conservatively — as accumulation only. It does not count the policy's death benefit (which exceeds the cash value throughout) or the secondary objectives below. These are additional value the reserve alternative cannot provide.
Crossover year
—
First year policy after-tax exceeds reserve after-tax
After-tax accumulationPolicyReserve
Year
Policy (AT)
Reserve (AT)
Advantage
Sig.
What else this strategy can address
Key-person protection. Protects the business against the loss of a key employee, with flexibility to share part of the benefit with the employee as a retention feature.
Business succession (buy-sell). Funds the orderly purchase of an owner's interest, structured to the ownership and buyout — and, designed thoughtfully, can ease estate and Connelly exposure over time and align with the owner's personal legacy goals.
Executive benefits (deferred comp / bonus). Creates a retention benefit or private pension for key executives, with flexibility in how it's funded, taxed, and vested.
Balance sheet & creditworthiness. The policy's cash value is a company asset that strengthens the balance sheet and can serve as lender-recognized collateral, supporting borrowing capacity.
Estate planning. For owners with larger, potentially taxable estates, permanent life insurance can supply liquidity for estate taxes without forcing a sale — often best held outside the taxable estate, with Connelly-type exposure addressed through structure. Estate structuring involves legal and tax considerations; Imprimis Financial coordinates with the client's tax and legal advisors.
Each is designed differently than the reserve strategy shown here. Imprimis Financial structures the approach to the client's specific goal, coordinating with other advisors where appropriate.
Goals and covered persons
03
Secondary goals travel with the proposal request. They do not change the comparison math or expose a chassis.
Primary goal is always reserve efficiency. Add any that apply:
Who might be covered — name, Biological Male or Bio Female, date of birth, and a general-health category. No medications or conditions. If you list more than one insured, allocate the annual premium so the shares add to 100%.
Request for proposal
04
Sends one internal notification to the practitioner. Does not email the client or the advisor of record. Field underwriting stays a brief offline conversation.