Executive Bonus

Along with you, your people are some of your most important assets—from partners to top producers to support staff, everyone impacts your business success. To protect your business, you need to protect your people. There are several ways insurance can help.

Using insurance as part of executive bonus planning is mutually beneficial.

Through executive bonus planning, your business can offer specialized perks tailored to the needs of executives, including fully-paid-for, higher-level insurance policies you can give as an extra (and persuasive) financial incentive.

 

  • Permanent life insurance policy: Accumulates tax-deferred cash value that grows over time and can be used to support the executive’s retirement goals. If the executive dies, an income-tax-free, lump sum cash benefit is paid to their beneficiary to help provide for their loved ones ongoing financial needs. 

  • High-value disability insurance policy: Provides more comprehensive income protection for those with higher compensation levels, effectively closing the gap from standard group employee coverage. It helps maintain a standard of living if the executive can’t work for a prolonged time due to accident, illness or injury.

What it does for executives What it does for your business
Delivers extra protection Offers tax benefits as you can deduct the premiums
Reinforces their value to the business Promotes ongoing loyalty
Offers additional financial security Hinders poaching and turnover
Gives peace of mind to executives and their families Creates vested interest in your business

Things to know about using insurance for Executive Bonus Planning

Your business buys an insurance policy for the executive.

The executive owns of the policy.

Your business pays all or part of the premiums.

The cost is passed on to the executive as a bonus.

Your business writes off the bonus as a tax deduction.

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