Executive Compensation in Arlington, Fort Worth, TX and Surrounding Areas
Recruiting and retaining top talent not only depends upon your company, its culture and the position – but also a competitive compensation package. Many businesses rely upon life insurance to support and fund portions of executive compensation.
With the use of company-owned life insurance plans, an attractive executive compensation plan can be created. Cash value distributions from permanent life insurance can be used to pay retirement benefits to the employee or upon death, the benefit can be distributed to the employee’s beneficiaries. Both non-qualified deferred compensation plans and supplement executive retirement plans often are funded by life insurance.
Non-qualified deferred compensation plans allow employees to defer compensation to some future date with the intent of reducing current-year tax liabilities. Supplement executive retirement plans allows for the build-up of retirement assets without incurring any up front income tax. Additionally, the lump sum death benefit from the insurance provides financial protection to the executive’s family.
Life insurance has several advantages over other investment vehicles for funding non-qualified deferred compensation plans and supplement executive retirement.
- Tax deferred growth of cash value (some employers are subject to alternative minimum tax)
- Tax free withdrawals up to the owner’s basis
- Tax free death benefit to the employer
LJ Adams Insurance will design an executive compensation plan that meets your businesses needs and competitively attracts top talent.