Life Insurance for Business
What is an executive bonus plan?
An executive bonus plan allows a business to provide a life insurance policy as a bonus to a key executive. The business pays the premium as a tax-deductible bonus. The executive owns the policy and can access the cash value. The executive pays income tax on the bonus.
Key Points
- Executive bonus plan: business pays life insurance premium as tax-deductible bonus
- Executive owns the policy and can access cash value
- Executive pays income tax on the bonus
- Business gets a tax deduction for the premium
- An independent agent can help you structure an executive bonus plan