Challenge

A freight rail firm with 14 locations across the U.S. and Mexico faced two major risks: the potential loss of key executives and unfunded Buy-Sell and Unit Retirement agreements. During a prospecting meeting, Hylant’s Property & Casualty team identified these exposures and brought in the Executive Benefits team.

The review confirmed significant human capital exposure and financial obligations tied to leadership continuity and ownership transitions. Hylant recommended Company Owned Life Insurance (COLI) as both a financing vehicle and risk mitigation tool.

With agreements and demographics in hand, Hylant delivered a cost matrix within days, outlining premiums for appropriate coverage. The leadership team approved three policies, moving directly into the application, exam, and underwriting process.

Solution

Over the next six weeks, Hylant worked closely with the client to finalize coverage and strengthen legal alignment:

• Underwriting savings: One insured was classified as a nicotine user, tripling the quoted premium. Hylant went back to market and secured non-smoker rates, saving $3,100 annually, or $93,000 over 30 years.
• Agreement review: A trusted vendor examined the Buy-Sell, Restricted Unit Grant, and Operating Agreements, providing recommendations for the client to review with counsel. This ensured the agreements were aligned with funding strategies and helped the leadership team anticipate potential gaps.
• Coverage implemented: Three $1 million life insurance policies were placed, providing income tax-free capital to recruit and train successors, offset revenue loss, or fund ownership buyouts required under the agreements.

By addressing both the financial and legal aspects of succession planning, Hylant delivered a solution that not only reduced costs but also ensured long-term stability for the company’s leadership and ownership structure.

From succession planning to financial protection, Hylant’s Executive Benefits Advisors help companies safeguard leadership and strengthen business continuity.