Part of sound business practice is to assure that your key people are compensated in a way that rewards their past performance and encourages future performance. There are several tools available to help you provide targeted benefits to you and your key people. It is not unusual for a business to use more than one of these concepts – building a program that helps meet your unique needs.
Non-qualified plans are plans that you can use to provide additional benefits to yourself and your key employees and executives. Non-qualified plan are often used along with a qualified plan as an additional benefit to attract and retain key employees. They also offer greater flexibility in who can be covered under the program and are generally easy to establish and administer.
Key Person Protection
If you are like many business owners, much of the success of your business depends on your employees. Often times, there is a core group of contributors who help drive your business. Whether they are part owners or important employees, they bring value to the table. You want to make sure that your business will continue to be successful even if you lose their expertise.
So how do you protect your business when the financial security of your business is threatened by the death of a key person?
Key Person Life Insurance
You can help cover the financial loss your business would experience at the death of a key employee by insuring your key people. Learn more ▼
Executive Bonus Plan
An Executive Bonus Plan, also referred to as a Section 162 plan, allows a business to provide personally owned life insurance as a tax-deductible fringe benefit to select key employees.
Learn more ▼
Split Dollar Plan
A Split dollar plan offers a creative solution to helping your key employee obtain needed life insurance. Split dollar is a term that covers two different executive benefit arrangements.
Learn more ▼
Non-Qualified Deferred Compensation / Salary Continuation
Your business may enter into an arrangement with your highly compensated or select group of management and provide them with a supplemental retirement arrangement that is tailored to both the business and executive’s needs. Learn more ▼