Many companies have long used non-qualified, supplemental retirement plans to help retain and attract quality executives. As many baby boomer executives approach retirement, and need to accumulate more retirement funds to maintain their lifestyle, the need and appreciation for these benefits never has been greater

You can help retain your key people and attract new talent by offering executive benefits. Plans can be customized to provide for the financial needs of key executives, using an individual life insurance policy, annuity contract or a combination of both.

What is it?

We offer products to help you implement your employee benefits strategies such as qualified or non-qualified deferred compensation programs, executive bonus programs, 412 (i) plans, Executive 162 Bonus Plans, split-dollar, simplified employee pension plans and savings incentive match plans.

How is it used?

Generally, these executive programs are paid for with an individual life insurance policy, annuity contract, or a combination of both.

Executive Bonus Plan

An executive bonus plan, funded by a life insurance policy, lets you provide an executive with estate liquidity or supplemental life insurance protection at a level your group plan doesn’t provide. Or simply use it to reward an appreciated employee. The employee-owned policy insures the employee’s life and is paid by the employer (and therefore tax-deductible for the employer), either directly or through employee bonuses in amounts equal to the premiums due. The policy accumulates a cash value that’s available to the employee or made available upon retirement.

As a result of lower income in retirement years, many executives will receive less than 20 percent of their final compensation in retirement income from company sponsored retirement plans. However, to maintain pre-retirement living standards, executives often need to receive 75 to 80 percent of their final compensation in annual retirement income.

To bridge this retirement planning gap, many companies employ non-qualified deferred compensation plans for executives who choose to defer more pay for retirement. Some companies also match a portion of executives’ contributions. These programs encourage higher compensated employees to take responsibility for their own retirement savings

Properly designed supplemental, non-qualified retirement plans can provide important incentives and rewards to executives, and also increase shareholder value.

Please contact us for further details and product information