Executive Bonus

As a business owner, there are many issues that keep you up at night. Choosing the right benefit plan for you and your key employees should not be one of them.

 

In today’s competitive workplace recruiting, retaining, and rewarding key employees is very important. Benefit plans are often the leveraging tool that makes the difference and puts you ahead of the competition whether hiring new key people or keeping those that you have come to rely on. As you consider the many options available, expand your thinking to be certain you are also rewarding yourself in the process.

 

There are options to consider when planning for your retirement. The Executive Bonus Program utilizes permanent, cash value life insurance and was created as a strategy for business owners to reward themselves and their key employees with a tax-advantaged retirement program.

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Premier Bonus is a non-qualified benefit plan designed to:

 

– Attract, reward, and retain key employees

 

– Create income tax-deferred growth 


 

– Provide tax-free retirement income 


 

– Deliver income tax-free benefits to heirs at death 


 

Premier Bonus may be the right strategy for you if:


 

  • As a business owner, you can’t save enough within your qualified plan 

  • You are looking for a unique benefit that will help you attract candidates to your business 


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  • You have existing key employees you want to reward and ultimately retain
  • You want to provide you, and your key employees, with additional life insurance protection
  • You are concerned about future income tax rates 


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How it Works 

Step One

 

The business pays a bonus to the executive to fund a personal life insurance policy. The bonus is potentially deductible1 by the company, taxable to the executive. 


Step Two

 

The executive pays the premium to the insurance company to purchase their individually owned life insurance policy.

Step Three

 

The life insurance policy accumulates cash values, which are used to reimburse the executive for taxes on the bonus received.

Step Four

 

At retirement, tax-free income is paid to the executive and at death, tax-free death proceeds are paid to the heirs. 


Demographics: Business Owners under age 60 who want to use Company dollars to save for retirement.

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