Olympia Financial Group has filed a patent application in Canada and the U.S. for an owner-directed universal life insurance product.
The new product comprises a universal life insurance policy, which lets the owner of the insurance manage the assets in their account.
The policyholder’s account will also have safeguards against lapses for non-payment of premiums, as well as loss of tax-advantaged status of the account by pre-configured authorization settings.
As Olympia is not an insurance company, it plans to earn fees or royalties for the administration of the self-directed portion of the owner-directed assets, and will not underwrite or offer life insurance. Olympia is seeking joint venture partners for the product.
Rick Skauge, president and CEO, says: “This new structure will allow individuals to contribute shares of listed companies, bonds, or mortgages to their universal life policies. The costs to administer these plans will be more transparent than the costs associated with traditional universal life policies.”