LAS VEGAS, NV--(Marketwire - Mar 20, 2013) - INSCOR, Inc. (PINKSHEETS: IOGA) is pleased to announce it has redesigned its business model to capitalize on the financial opportunities that exist with Financed Insurance Trust OPEB plans inside municipalities and corporations. FIT OPEB plans are a customizable retirement benefits solution developed by INSCOR in collaboration with attorneys, actuaries and financial institutions.
The plan provides governments and corporations with a low-cost, highly-efficient option for the management and funding of their Other Post-Employment Benefits (OPEB) costs. These type benefits can include retiree healthcare, dental, and life insurance.
As cash-strapped governments scramble to find OPEB funding solutions, the typical options available are to cut benefits, cut programs and projects, and/or issue bonds or raise taxes. These unfunded costs now demand attention with the implementation of new accounting rules (GASB 45) from the Governmental Accounting Standards Board. Studies reveal there are over $1.5 trillion in unfunded OPEB liabilities existing among states and municipalities.
A FIT OPEB plan takes a different approach: purchasing specifically designed life insurance on active employees using funds borrowed from the financial sector or bond issuance and secured by the insurance policies themselves. The program functions by utilizing the arbitrage between the borrowing rate and the rate of return on the policy.
The plan is modeled to provide an income stream from policy proceeds based on predictable employee mortality and yearly withdrawals from policy cash values. As a result, a FIT OPEB plan can provide a cash stream to support each year's OPEB obligations, plus fund future OPEB liabilities with little or no spending increases, tax increases or reduction in benefits.
INSCOR received a very positive reaction from the industry when it launched the program in beta form and now plans to ramp up operations to commence offering FIT OPEB programs across the country commencing Q2 of 2013.
About INSCOR, Inc.
INSCOR specializes in educating and marketing the FIT OPEB plan to municipalities and corporations as a low-cost solution to funding retiree and other employee benefits. A FIT plan variation also works for affluent individuals, entertainers and professional athletes -- whether for estate planning or funding cash flow needs. INSCOR's "FIT" (Financed Insurance Trust) strategy uses a combination of favorable financing terms, innovative uses of specific life insurance products and trusts -- all of which result in minimum levels of out-of-pocket costs for producing significant future funding and revenue stream opportunities.