Section 79 plans offer employers an opportunity to purchase life insurance for their employees on a tax-advantaged basis. These types of plans can offer several advantages:
•
|
Tax-advantaged life insurance for key employees' personal
or business needs |
•
|
Executive only taxed on a portion of the employer contribution
(generally 60-65%) |
•
|
Income tax deduction at the corporate level
|
•
|
May allow high percentage of plan cost allocated to key employees
|
•
|
May provide supplementary retirement income through policy loans
and withdrawals1 |
•
|
Helps attract and retain key employees
|
•
|
Offers a limited funding commitment
|
•
|
Accelerated Benefit Riders available in the event of a
terminal, chronic or critical illness |
No comments:
Post a Comment