Executives have different needs than typical employer-sponsored group benefits packages. They often have much higher incomes requiring larger death benefit payouts. For some enterprises, the passing away of certain executives could affect the company’s ability to stay in business. To recruit and retain top talent, having a robust benefits package that includes executive life insurance is critical. Working with an experienced insurance broker can set things in order.
Benefits and Features of Executive Life Insurance
Building employee loyalty is easier when you provide additional benefits such as executive life insurance. Here are some of the features and benefits that set this type of insurance apart from the rest:
- Provides extra protection for your key executives: Because of their higher incomes, executives need more considerable death benefit protection to fill the financial void after their passing. A life insurance policy for executives gives them higher protection to suit their unique needs.
- Gives access to cash value: Business owners may need access to additional cash to aid in uncertain economic times. An owner can borrow against the accumulated cash value to handle different business situations if they have a Whole Life policy.
- Create an executive bonus: Another way to help an executive obtain the life insurance they need is to pay them an amount equivalent to the policy premiums and tax liabilities. Using these funds, they purchase and own the additional needed coverage.
- Helps with succession planning: Think about buy-sell agreements and partnerships. When one party dies, what happens? An executive life insurance policy help companies buy the deceased partner’s share from their estate—this aids in mitigating conflict between involved parties.
- Equalize estates: For family-owned businesses, it can cause conflict among different members that may not have the same involvement. It is possible to use a life insurance policy as part of estate planning to equalize death benefits between family members.
- Retain key employees: If you want to provide additional retirement benefits to a key employee, using a life insurance policy helps. The company owns the policy. Once the employee retires, the policy’s funds are used to supplement the employee’s retirement income. Death benefits are paid to the company if the employee passes away before retirement.
Attract, Retain, and Protect Your Key Employees with Executive Life Insurance
Finding and retaining excellent talent requires a quality company work culture and an attractive benefits package. You can bolster your company’s benefits, including executive life insurance, when you work with the dedicated staff at Executive Planning Group. We get to know you and your company, review your existing plans and offer solutions to help you grow as an employer. Attract new and retain existing talent when you seek out our assistance. To learn more about our services and what we have to offer, don’t hesitate to get in touch with us today or request a quote online.
Call us at 601-982-3000 to discuss the advantages of adding executive life insurance to your company’s benefits package.
Disclaimer: Securities offered through Valmark Securities, Inc., Member FINRA, SIPC. Investment advisory services offered through Valmark Advisers, Inc., an SEC-registered investment advisor. Executive Planning Group is a separate entity from Valmark Securities, Inc. and Valmark Advisers, Inc.