Retain executives with a bonus benefit
A key to keeping your business moving forward is attracting, rewarding and retaining outstanding talent. Consider an executive bonus plan as a benefit solution for your business.
How it works
An executive bonus plan lets you choose who receives the benefit.
The life insurance is owned by your employee, who can select their own policy beneficiary. You pay tax-deductible premiums (provided IRS guidelines are met) and your employee pays an annual tax on the bonused premium amounts.
For service to your company, your employee has the protection of a permanent life insurance policy that builds cash value they can access for their needs, such as retirement.
It’s important you have a written agreement in place spelling out the details of the bonus and any restrictions.
Plan options
If you want to maintain more control of the benefit, your financial professional can help you establish a custodial executive bonus plan. This allows you to restrict the employee's access to policy cash value for a certain period of time.
Executive Bonus Plan can help you with:
Setup and administration that's easy
Quickly add a benefit your business can offer and maintain with tax-deductible premiums.
Control over who qualifies
Unlike a qualified retirement plan, you can be selective when you choose which employees get this benefit.
Protection and value for executives
If permanent life insurance is used, your executives can benefit from death benefit protection and cash value they can access to meet their needs.
