.png)
Using life insurance allows an employer to offer a permanent life insurance policy to certain key employees. The key employee owns the policy and the cash value and can select a beneficiary to receive the life insurance benefit at his or her death. It's a win-win!
QUESTIONS? REACH OUT!
It's not just about hiring good employees - Keeping them happy and content in their jobs is the challenge.
What do you do to make sure that you can attract, reward, and retain key employees? Well, one of the things, and this is a great tool with life insurance is, I can say, hey, Mr. Key Employee, hey Ms. Key Employee, you're doing a great job and we want you to be here for a long time. If you stay until you're age 65 / you stay for 20 years, we're going to do this for you.
But, if you leave, you don't get anything. It can either be a cash payout, it can be an income, it can be a lifetime income. So the owner puts life insurance - the owner of the business owns the policy, he/she is a beneficiary of that policy,and at the time of retirement, if the employee does everything they're supposed to do, he can then take income out of the policy and pay it to the employee.
If the employee leaves before they've done their part, then the employer gets to keep it and use it for his own retirement, or he can use that income to help fund another employee’s retirement.But, he's using the life insurance as the bucket from which the money comes out to help fulfill that employee benefit - that non-qualified employee benefit - for the employee.
