"Time is key to building your financial security" – Suze Orman

Private Reserve Account: Banking Alternative

Our Private Reserve Account, or PRA, is an exclusive product/service that CalChoice Financial provides to our clients who are keeping their savings in a bank earning .5% instead of in a PRA that may return 6-7%.

We like to call it an alternative way of banking or “being your own bank” if you will. It is a great way to make one dollar serve multiple purposes such as tax-advantaged income in retirement, protection if you were to get ill (with living benefits added to the life policy), tax-advantaged death benefit to heirs, college savings plans for children and even mortgage or auto loan payoff acceleration.

The rich have been using this method for years, and now CalChoice Financial is bringing it to you. Get in touch with us to find out all the benefits you can receive by opening a Private Reserve Account.


  • Grows when the stock market grows
  • Principal guaranteed by the insurance company underwriting the account
  • Gains are locked in at specified intervals, usually annually
  • Multiple tax-advantages to account holder, and heirs
  • Cash portion of account can be withdrawn used for any reason
  • Interest is still credited even when money withdrawn

Knowing Your Private Reserve Account


PRA Basics

A Private Reserve Account is structured around a life insurance policy which meets specific criteria to achieve tax advantages. There is no cap to the amount you can put in, and the cash portion of the account is tied to a specific market index, although it is not directly invested in the stock market. That’s why the insurance carrier can guarantee the principal in the account if all contract terms are met.

Instead of making pennies in a bank account CD or money market, you can potentially achieve 500 times the interest rates banks are paying.


Permanent Life Insurance

In addition to allowing you to take cash out for any reason, a Private Reserve Account can cover the most critical aspects of financial protection you and your family need for a secure future. A PRA with accelerated Benefit Riders can provide benefits in the case of:

  • Chronic Illness
  • Terminal Illness
  • Long-Term Care

Benefits you never thought you could obtain, at a price you can afford.


Upside Gain Potential

Interest is credited based on a specified market index (i.e. S&P) and has a 0% floor. With a PRA, there is no loss of cash value due to declines in an index based on the claims-paying ability of the insurance carrier, but there is the potential for tax-deferred growth. Additionally, you can take potentially tax-free withdrawals for any purpose, with complete access to the cash value in your Private Reserve Account as long as all PRA contract provisions are satisfied.