© Rob - Fotolia.comBusiness owners face some intense questions each day.  The two below are likely to keep many business owners awake at night. 

In the event of the owner’s retirement, disability, or death is the corporation going to survive?

Is it desirable for assets purchased by the corporation to fund future executive benefits to be accessible to corporate creditors?

When the answer to either question is “no,” consider a type of selective executive benefit plan owner by the employee. 

Executive Bonus Plan

In this option, the corporation:

  • Pays a bonus to selected key executives in the form of life insurance premiums.

  • Deducts its contributions, which are taxable to the executive.

The executive owns the policy, making it secure from corporate creditors, and can accumulate substantial cash values.

Collateral Assignment Split Dollar Plan

In a split dollar arrangement:

  • The employer pays part of the cost.

  • Selected key executives are able to purchase cash value life insurance at reduced cost to them.  

The executive owns the contract, making it safe from corporate creditors. The executive assigns the policy to the corporation as security for the premium contributions.

Sound interesting?  We welcome your questions and would like to discuss good options to protect your family, company, and executives. 

Dean & Draper is a Trusted Choice insurance agency representing over 200 insurance companies. For over 33 years we have offered a trusted freedom of choice to our clients.  

Contact Us.