As the industry continues to recognize and celebrate Life Insurance Awareness Month (LIAM), it’s a great time to take a closer look at the latest digital solutions that can help you find new prospects, gain insights and sales strategies, and grow your practice in a wide variety of markets. Take your small business benefit offerings to the next level.
In today’s competitive business environment, business owners face several challenges in attracting and rewarding key employees, particularly for small, closely held businesses or pass through entities. Employers often seek a solution that is simple to implement and administer, tax- deductible, and includes a “golden-handcuff” element. Employees want tax-advantaged ways to save for retirement and protect their families. What’s more, employers and employees alike are looking beyond pure financial compensation towards more holistic planning, incorporating health and wellness programs as a component of a total rewards package.
An Executive Bonus Plan (aka “162 Bonus Plan”) or a Restricted Endorsement Bonus Arrangement (REBA) may be an excellent solution to achieve these goals. Under both of these plans, an employer selects a key employee to purchase a permanent life insurance policy on his/her life. The insurance premiums are then paid for by the employer in the form of a bonus to the employee.
*Bureau of Labor Statistics 2019.
Credit: John Hancock-Retaining Top Employees and Attracting New Ones
An Executive Bonus Plan (aka “162 Bonus Plan”) or a Restricted Endorsement Bonus Arrangement (REBA) may be an excellent solution to achieve these goals. Under both of these plans, an employer selects a key employee to purchase a permanent life insurance policy on his/her life. The insurance premiums are then paid for by the employer in the form of a bonus to the employee.
With unemployment rates at almost a 50-year low and a competitive labor market,* it can be challenging for small business owners to find ways to attract, retain, and reward talented employees. An Executive Bonus Plan is one of the easiest approaches to enhance a compensation package for key employees.
*Bureau of Labor Statistics 2019.
Credit: John Hancock-Retaining Top Employees and Attracting New Ones
