 |
Provide a mechanism for higher retirement
benefits to key employees |
|
Recognize and reward key people |
|
Simple to communicate and understand |
|
Flexible |
|
Recruit top management talent |
|
No formal government approval |
|
Retirement age is flexible and can have more
than one age within group |
|
Vesting schedule designed to protect employer |
|
Cash surrender value (csv) of life insurance
is higher than normal products (averages 95%
to 100% of first year premiums) |
|
Guaranteed insurability available for groups
of 20 or more |
|
Not subject to government imposed limits |
|
Federal and state income taxes are reduced |
|
Survivor benefits may be improved |
|
Accumulate earning on a pre-tax basis |
|
Protected against future uninsurability |
|
Evidence of Company's interest in key person |
|
Deferral of income taxes |
|
In service distributions available |
