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Salary Continuation

With Salary Continuation, there are several benefits to both the employer and employee. Agreements are entered between the two parties where it pertains to death, retirement and salary. There are tax benefits and financial advantages to both the employer and employee.

Advantages to the Employer:

  • Employer applies for and owns the life insurance policy on the employee, the face amount of which is sufficient to fund the plan’s death benefit obligations.
  • Employer pays the retirement benefits to the employee from its current earnings and recoups these benefits from the ultimate life insurance death benefits.

Advantage to Employee:

  • Retirement/Survivor benefits are made available at no cost to the employee