Attract and Retain Top Talent with an Executive Bonus Arrangement
An Executive Bonus Arrangement provides key employees additional life insurance protection as well as access to policy cash values. Many employers incorporate this type of benefit into their overall executive compensation strategy.
Benefits to Employer
- Employer selects the key employee or employees it wishes to include and can offer individual bonus arrangements designed to accomplish specific goals
- Plan costs are considered compensation and therefore deductible
- Minimal administrative costs and reporting
- The Restrictive Endorsement provides a “golden handcuffs” for the employer
Benefits to Employee
- Employee receives a life insurance benefit
- Employee owns policy, names beneficiary, and retains control over policy
- Policy is portable
- Employee has access to cash value at retirement which can provide an additional source of income
Employers can place a restrictive endorsement on such policies to serve as incentive in encouraging the key employee to stay with the organization.
Contact Chris Henderson, Managing Director of M3 Financial, to learn more about how an Executive Bonus Arrangement could fit into your organization’s strategy.
Investment advisory services offered through M3 Financial, a registered investment advisor and separate entity from M3 Insurance.