Executive Bonus Plans (Section 162)

“Rewarding leaders rewards the whole organization.”

—Jack Welch

Reward top talent with tax-advantaged life insurance.

How It Rewards and Retains

An Executive Bonus Plan (under IRC Section 162) allows a business to provide life insurance benefits to select employees by paying the policy premiums as a bonus. The employee owns the policy, builds tax-deferred cash value, and may access funds later—while the business receives a tax deduction for the bonus. These plans are simple to set up, non-qualified, and highly customizable, making them a smart tool for attracting and retaining key executives.

Designed for Business Owners & High-Income Talent

Ideal for business owners, partners, and executive teams looking to offer personalized, high-value benefits outside of group plans. This strategy works best for companies that want to reward performance, enhance retention, and help leaders build personal wealth—with minimal administration and no IRS discrimination testing.


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