Executive Bonus: Which Option Do You See Happening the Most?

1.Single Bonus and employee pays the tax on it
2.Double Bonus and the employer through premium payment covers taxes
3.Policy Pays taxes via policy loans
4.Bonus Plus employer makes cash loan that is repaid later to cover taxes

When would you use one option over the other? Is there an option you see the most?
Thanks,
 
From a sales standpoint, I would sell more benefits to the group.

Sell a group health savings account with employer funding 100% of premium and HSA contribution.

Load up on employer sponsored life insurance. After $50k it's taxable income but the employees usually don't mind on GI.

I would also sell a super rich dental plan.

Then I would sell a rich STD and LTD. Maybe add Individual LTD for a higher benefit.

For the final sale I would add a group LTC policy that is portable.
 
This thread shouldn't be here, but in the Life Insurance forum.

ABC's response is in light of employee benefits... not an executive benefit program.

emptyeternity... do you have access to InsMark? Specifically the Executive Trifecta presentation?

It has 3 benefits:
1. Keyman policy for the company. Not tax-deductible, but the company is the beneficiary of the policy.

2. Maximum fund it for deferred compensation. You can probably tie this into a golden handcuff agreement.

3. The executive retires and pays capital gains taxes on the cash surrender values above premium payments.

There's a whole list of benefits on this that gives the COMPANY more control over such a benefit... as well as a number of tax considerations. I probably didn't disclose them well enough for this post.

If you have a contract with Assurity, they'll give any producer access to the InsMark illustration system.
 
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