Executive Bonus Arrangement Life Insurance. A bonus arrangement using life insurance that is owned by the insured is a way to reward key people. Through an executive bonus arrangement funded through a lafayette life insurance policy, you and your financial representative can find meaningful compensation incentive plans that are generally income tax deductible for your business.
The executive will be the owner of the policy and he or she has the right to name the beneficiaries of the policy. A restricted executive bonus arrangement (reba) can meet the employer’s goals of attracting employees, retaining them for long period of time, rewarding them for good performance, retiring them with adequate savings and receiving a current tax deduction. Executive bonus plan an executive bonus plan (also known as a “162 bonus plan”) is an arrangement in which you pay a bonus to an executive by paying the annual premium on a life insurance policy for the executive.
