Choose from the following products:
Executive Bonus Plan Key Person Insurance Deferred Compensation
Split Dollar Reverse Split Dollar Insured Buy-Sell Agreement
(Entity Purchase Plan)
Insured Buy-Sell Agreement
(Cross-Purchase Plan) 		Group Carve-Out Plan Stock Redemption
Group Carve-Out is an employee benefit plan that helps selected key employees purchase permanent Life Insurance on a favorable cost basis.
How it works...
  1. The corporation reduces its maximum Group Term Life coverage to $50,000 for all employees.
  2. The corporation enters into an agreement with selected key employees to provide a subsidy for personlly owned permanent Life Insurance for the employees.
  3. The corporation uses the reduction in Group Term Life Insurance premiums to pay premiums under these agreements; the employees pay the balance of the premium.
  4. The employees have all rights to living benefits from the coverage.
  5. The employees' beneficiaries would receive income tax-free benefits upon the deaths of the employees.
  6. The employees would be required to pay taxes on that portion of premiums paid by the employer.
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