When you want someone to stay with you who may be tempted to leave Golden Handcuffs make it worth their while to stay by putting significant benefits in their middle-term future.

Talented and committed employees play a critical role in the success of your business. In today’s competitive marketplace, it is becoming increasingly more difficult to attract and retain top talent. We can help you enhance your employee benefits package to compete more effectively with the staying power of our products and services.

The idea is to slap "Golden Handcuffs" on key employees is not new. Although definitions vary, the general idea of golden handcuffs is to cause financial pain to senior managers and executives if they leave your employment. Usually, a golden handcuff is a benefit, payment or incentive linked to the recipients' staying.

Whether you own a closely held business or you are a senior executive in a major corporation, you know that your business is dependent on the capabilities of your key people. Keeping key people is critical to the long-term success of your business. Increasing compensation, enhancing incentives and adopting new fringe benefits add to business overhead. Balancing the impact on the bottom line with the need to retain experience and expertise can be a challenge in today’s marketplace.

Split Dollar is a cost and tax effective method of providing "Golden Handcuffs" life insurance protection to your key employees. The overall plan is tailored to meet the needs of your business and each key employee that you choose to cover. Moreover, as the owner of a business, you can obtain significant personal benefits from a Split Dollar plan of your own.

Split Dollar by itself is great if the employee dies while the plan is still in effect, but what happens at retirement? Your business can create a supplemental executive retirement plan (SERP), using your business’ interest in the life insurance cash values to fund the promised benefits. Withdrawals can be taken from the policy to distribute to the employee, or the entire policy can be transferred to the employee in a lump sum at retirement. As a form of “Golden Handcuffs,” the promised benefit to the employee can be made contingent upon the employee fulfilling certain requirements, such as remaining employed for at least ten years.

Please contact us for further details and product information