Executive bonus plans and indexed whole life
One of the keys to the success of a business is the ability to recruit, retain and reward outstanding talent.An executive bonus plan funded with Ohio National’s Prestige Indexed 10 Pay whole life insurance is an easy and effective way to provide a quality fringe benefit for key employees on a tax-deductible basis.
Under a typical bonus plan, the employer chooses the participants in the plan and pays the life insurance premium through a salary bonus, in accordance with a written agreement with the executive employee. The employee enjoys the security of life insurance coverage, while having access to the policy’s cash value. The premiums paid are a tax-deductible to the business, assuming IRS guidelines are met. The employee pays tax each year on the bonus premium. For added control, a custodial bonus may be added which restricts access to policy cash value for a stated period of time.
Indexed whole life insurance is issued by Ohio National Life Assurance Corporation. Indexed Whole Life Insurance is issued on policy form ICC22IWL-1 and any state variations. Optional Waiver of Premium Rider is issued on rider form 22-IWWP-1 and any state variations. Policy, policy features and rider availability vary by state. Guarantees are based on the claims-paying ability of the issuer. Dividends are not guaranteed. Products, product features, and rider availability vary by state. Product not available in CA. Issuer not licensed to conduct business in NY.
THIS MATERIAL IS FOR USE WITH THE GENERAL PUBLIC AND IS NOT INTENDED TO PROVIDE INVESTMENT, INSURANCE OR TAX ADVICE FOR ANY INDIVIDUAL.