NonQualified Benefit Plan Examples

Life Insurance Plans

Employers are often looking for ways to provide meaningful life insurance benefits to their key employees, while minimizing their benefit costs.

A cost-effective life insurance plan typically involves the purchase of individual policies that are specifically designed for the corporate benefit market. Usually, the premiums for these policies are paid for either directly by the employer or indirectly through a salary increase or bonus to the employee. Your employee will benefit because he or she will usually 1) be the owner of an ever increasing asset, 2) have increased flexibility and 3) have permanent (not term) insurance coverage. You will benefit because of 1) improved economics and 2) your ability to provide an additional retention benefit at minimal cost.

Bottom line, a properly structured life insurance plan can replace existing temporary term life insurance coverage with an enhanced benefit that is more efficient for both you and more attractive for your key employees. These plans will also make it easier to recruit, retain and reward the highly sought after executive and director talent so crucial to your success. Contact Bank Consulting Group.