183 Contractors Street,
An Executive Bonus Plan is a way for owners of corporations, companies and small to large businesses to provide additional supplemental benefits to key employees or executives of their choice. Generally, the plans use Life Insurance, funded by the employer’s bonus payments, to provide the insured employee with access to policy cash value if needed for retirement or other purposes, and death benefit protection for the employee’s family.
With an Executive Bonus Plan, the business can use tax deductible company funds to selectively provide valued benefits to keep employees. A way to attract and attain key personnel. It also becomes very attractive to younger key employees in lower tax brackets who likely have insufficient insurance coverage.