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Executive Bonus is a fringe-benefit plan that provides employees with personal
Life Insurance. The employer pays income tax-deductible premiums on Life
Insurance applied for and owned by the insured employee. The plan is ideal for
these reasons:
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Tax-deductible to employer.
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Employer can decide which employees are eligible and the amount of benefit each
will receive.
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Plan is easy to install and inexpensive to administer.
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"Tax-leverage" could mean savings to employer is greater than tax cost to
employee.
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Additional Advantages to the Employer
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Selected employees can be recognized and encouraged to remain with the firm.
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No prior plan approval needed from the IRS, and the only tax requirement is
that premiums be reasonable compensation to the employee.
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The plan can be terminated at any time, if the agreement permits, and the
Policy remains in force.
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Additional Advantages to the Employee
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Employee completely owns the Life Insurance Policy and can borrow freely or
withdraw cash values at any time.*
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Accumulated cash values could provide a substantial supplement to retirement
income.
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Proceeds are income tax-free to the employee's beneficiaries.
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Any personal insurance need can be covered: family income, mortgage
cancellation, children's education, estate liquidity, etc.
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* Employee's tax advisor should be consulted as to the possible tax
consequences of any withdrawal.
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