Group Term Replacement Plans
Participating executives receive individual, guaranteed issue, low-cost policies. Rates are generally less than imputed income amounts created by group coverage. Therefore, the participant experiences less taxable income, while the corporation does not incur additional cost.
Section 162 Plans
The corporation bonuses each executive the age-based cost of their group life coverage. This results in effectively eliminating imputed income to participating executives without increasing the overall cost to the corporation. Participating executives receive individual, guaranteed issue, low cost policies. Coverage may be designed to be self-maintaining throughout retirement.