Category: Sales Concepts

Life Settlements

        Please excuse the mess while we work to update this portion of the site. In the meantime you can access available content by clicking on the links below! Life Insurance Settlement Association About Life Settlements Life Settlement Checklist Why It Takes a Good Broker to Get a Great Deal When a Client Sells a Life Insurance Policy 2016 Life Settlement Case Example Laws Pertaining to Life Settlements 7 Common Situations That Could Result in a Life Settlement...

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Executive Bonus Plan

An Executive Bonus Plan (Section 162 Plan), is an arrangement in which an employer pays premiums for a life insurance policy owned by key employees. It is a simple, selective employee benefit plan that can provide valuable life insurance protection and supplemental retirement income to business owners and key employees. An Executive Bonus Plan enables business owners to provide benefits in addition to qualified plan to attract and retain employees while enabling the business to recoup plan costs when benefits are paid. And since plans are selective and non-qualified, business owners can select which employees participate. With a “restricted” bonus plan, the employee’s access to policy cash values can be subject to a vesting schedule, making it an effective way to retain key employees. Policy premiums are income tax-deductible by the employer and taxable income to the employee This income tax can be paid by: The employee from personal funds The employer through a “double bonus” arrangement Withdrawals or loans from the policy cash values Target Market This planning concept is ideal for: Business owners looking to reward and encourage loyalty with their top employees, so they don’t leave and go to a competitor Business owners looking to reduce current taxable income and save more money for retirement   See also: Funding an Executive Bonus Plan with Life Insurance Additional Links PDF: Executive Bonus Plan Guide PDF: Executive Bonus Advisor...

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