Reward and retain your key employees with an executive bonus using cash-value life insurance!
As a business owner or executive, you know how important it is to have a strong team. This strategy can help you do just that.
Here’s how it works: You pay a bonus to your key employee in the form of a life insurance premium, which is then used to purchase a cash-value life insurance policy on the employee’s life. They own the policy, and the cash value grows tax-deferred over time. When the employee retires or leaves the company, they can take the policy with them and use the accumulated cash value to supplement their retirement income or for any other purpose.
Benefits include increased employee loyalty and motivation, tax-efficient compensation, and offsetting traditional retirement benefits. Of course, there are potential downsides to consider as well.
If you’re interested in exploring this strategy further, don’t hesitate to reach out to me for a consultation. Let’s work together to find the right solution for your unique situation.