Executive Bonus Plan

How can a company give a powerful, additional benefit to its key employees, and at the same time get an additional tax deduction?

That can be accomplished through an executive bonus plan.

A life insurance policy is taken out on an owner or key employee. The premiums are paid by the company, and are considered a bonus to the employee. The company can also deduct the premiums as a business expense.

This provides owners and key employees with a life insurance policy that gives their beneficiaries a tax free death benefit; but it also gives them cash value they can access tax free during their life.

It also provides companies a way to give a great benefit selectively to their key employees at a reduced rate because of the tax deduction.