In a competitive environment, your business needs to retain its senior management team to remain successful. While raising salaries is always an option, there is a better alternative available to your business.

A dual benefit plan is a creative, cost-effective solution that responds to two important needs of your senior management: retirement income and life insurance protection. Both of these benefits can be provided by a life insurance policy funded by your business. Due to ERISA requirements, this plan is only available to your company's senior managers and its highly compensated employees.

Life Insurance Benefits -
The life insurance benefit is provided under a split-dollar agreement. Under this agreement, the business pays a majority of the premium, while the employee contributes a portion of the premium to avoid having to pay any income tax on the insurance proceeds. In the event the employee dies during the agreement, the beneficiaries will receive life insurance death benefits which are free from federal income taxes.

Retirement Income -
At retirement, the business provides additional retirement income to the employee under a deferred compensation agreement. Depending upon plan design, policy cash values or death benefits can be used to fund retirement benefits.

Improved Benefits -
Enhanced life insurance and retirement benefits provide your business with a valuable tool to reward and retain its key employees.

Choice -
Your business decides which of your key employees are covered and their level of benefits.

Cost Recovery -
Permanent life insurance offers your business valuable cost recovery options.

Life Insurance -
Under the split-dollar plan, the employee's beneficiary receives income tax-free death benefits. These proceeds can be used to meet family income needs, pay off debts or satisfy any other financial need.

Supplemental Retirement Income -
Deferred compensation provides your key employees with an important source of retirement income.