Executive Bonus Plans

An Executive Bonus Plan funded with life insurance offers you a way to reward you key employees:

• The plan provides key employees with pre-retirement death benefit coverage to protect the employee’s family
• The cash value in the policy grows tax deferred and can provide the employee with supplemental retirement income or cash for other future income needs
• Life insurance provides post-retirement death benefits to protect the employee’s estate

Executive Bonus plans are exempt from IRS approval and participation can be limited to select employees. Additionally, premiums are fully deductible, provided it represents “reasonable” compensation under I.R.C. Section 162.

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