A compensation tool designed to reward select executives with cash value life insurance
Attracting, motivating and retaining key executives takes a competitive compensation package that includes more than a salary and a bonus.
The Golden Executive Bonus Arrangement (GEBA) can be a solution for rewarding and retaining your most valued executives. This tool gives your company a current income tax deduction through the payment of a bonus which the employee uses to pay the premiums on a cash value life insurance policy. The company can maintain control by including provisions into the arrangement which is drafted by a licensed attorney.
Features of life insurance funded GEBA:
- You decide who participates
- You can tailor it to the needs of each executive
- It is income tax-deductible for your company*
- You can adjust the benefit to meet your future needs
- It is easy to get started
Considerations: Company does not receive the policy's death benefit.
If you're looking for an executive compensation tool that helps you retain one or more key executives, consider using life insurance in a GEBA.
This material may contain a general analysis of federal tax issues. It is not intended for, nor can it be used by any taxpayer for the purpose of avoiding federal tax penalties. This information is provided to support the promotion or marketing of ideas that may benefit a taxpayer. Taxpayers should seek the advice of their own tax and legal advisors regarding any tax and legal issues applicable to their specific circumstances.
Life insurance products contain fees, such as mortality and expense charges (which may increase over time), and may contain restrictions, such as surrender charges. Please keep in mind that the primary reason to purchase a life insurance product is the death benefit.