Key Executive Compensation Strategies – Using Life Insurance
Are you taking advantage of the strategies available to reward your key employees and executives? Have you considered the thought of a top sales person or manger leaving your firm to accept a better offer elsewhere? Retaining and attracting key employees is crucial to the ongoing success of any company. In today’s competitive job market, it becomes increasingly important to offer additional benefits to these selected key people.
Many successful businesses recognize the importance of their key employees and use executive benefit plans to provide added supplemental benefits. Many executive benefit plans allow the company to discriminately choose the key executives that may participate and reward them for their valued service. In most cases, a cash value life insurance policy is an ideal vehicle for funding these executive compensation arrangements. The advantages of using cash value life insurance include: potential tax free death benefits and tax deferred growth of cash value.
The most popular types of executive compensation plans include: the Executive Bonus Plan, Deferred Compensation Plan, Salary Continuation Plan, and Supplemental Executive Retirement Plans (SERPs). The plan that works best for your company will depend upon the structure of your business and the objectives of the business owners. More specific details on each type of executive compensation plan can be found by clicking the appropriate plan below.
For additional information on key executive compensation options, please call MEG Financial today at (877) 583-3955. One of our licensed insurance professionals will assist you with any questions and provide a custom quote.