Executive Bonus Plan

Flexible contributions and multiple designs are available
May select among employees and may include business owner employee as a participant
Bonused dollars are tax-deductible to the company as compensation
Simple to implement: no IRS approval required
Provide incentives to reward and retain key employees

• Receive a valuable benefit
• Participant owns the life insurance policy and selects their beneficiary
• Potential for retirement income through tax-free loans and withdrawals
• Accelerated benefit riders offer access to the death benefit in the event of a qualifying terminal, chronic, critical illness or critical injury
• Determine the amount and time of distribution
• Cost for this program may be less than other types of arrangements
• Heirs may receive an income tax-free death benefit
• You may be able to pay income tax that is due on the bonus using loans and withdrawals from the policy

• Business pays premium to the insurance company and treats it as a bonus to the participant to fund personal life insurance
• Participant has tax-free death benefit for heirs, or potential for supplemental retirement income through policy loans and withdrawals
• Life insurance accumulates cash value that may be used by the participant to pay the taxes on the bonus