Bonus Arrangements
Bonus arrangements – sometimes called Executive Bonus Plans or Section 162 Bonus Arrangements – are a way to provide special benefits to the key employees and/or owners of a business. A bonus arrangement using life insurance that is owned by the insured is a way to reward key people.
Bonus arrangements, when used with a permanent life insurance policy owned by the employee, are easy to understand and simple to implement and can deliver the following benefits:
- Tax saving - tax deductible to the business (assuming reasonable compensation)
- Selective participation - the business selects the employees who participate in the plan
- Employee benefits - the employee will own the permanent life insurance policy and will enjoy all the benefits of that policy
- Simplicity - no IRS filings and no set up costs1
At National Life Group – we have a program called Bonus Plans 4 ½ ways – which helps identify at least 4 ½ different ways to design a bonus program. This demonstrates how flexible these programs may be.
Call us today at 800-906-3310, option 1.
1 If a deferred bonus plan is used, additional requirements and costs will apply.
What an exciting time, all your planning is coming to life and your dream is becoming a reality. We understand your business is consuming a lot of your time, between getting your name out there, finding new customers and hiring the right people, you’re keeping pretty busy these days. We also know that you are faced with many financial decisions, both for your business and for yourself. There are a number of financial solutions that you can take advantage of to protect what you have begun to build. Let’s plan for the expected and prepare for the unexpected.
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Qualified Plan Decision Tree
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View the resources below to learn more about how to protect your business.
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View the resources below to learn more about how to protect your business.
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