Executive Bonus Plans

An executive bonus plan is a way for the employer to “bonus” the employee an amount of money used to fund a life insurance policy. The employee simply pays income tax on the bonus applied as premium. In future years, the employee can draw on the cash value of this policy through loans or withdrawals, and in the event of his or her death, the employee’s family receives the death benefit.

Other types of Executive Benefits:
+ Split Dollar Plans
+ 401(k) Look-Alike Plans
+ Nonqualified Deferred Compensation Plans
+ Supplemental Employee Retirement Plans (SERP)