ExecutiveBonus Plans

Attracting and retaining Key Executives is critical to a business’ success. A specially designed employee-owned life insurance policy in which the company pays the premiums can be attractive to Key Executives. The premium amount then becomes a compensation bonus to the executive.

With these plans, the premium amount is tax-deductible to the business. They can be structured so the policy’s tax-advantaged cash value accumulations and death benefits provide:

• Survivor income
• Retirement income
• Estate liquidity
• Disability income protection
• Educational funding

To encourage retention of Key Executives, these plans can include a restrictive endorsement that limits the executive’s access to the policy cash values until a certain date.