Long-Term Care for Employed Spouses

Nikki Kook – Marketing and New Business You are the sole proprietor or partner of a business. Your spouse is a genuine employee of the business. A long-term care insurance plan can be set up and paid for by the business for the benefit of this employed spouse. In conjunction, the employed spouse’s spouse (AKA-… Read more »

Estate Planning is Changing as a Result of the American Taxpayer Relief Act of 2012

Sataya Froemming- Client Service for Estate Markets With the enactment of the American Taxpayer Relief Act of 2012, balancing income and estate tax planning has become a focus of clients wanting to minimize overall tax exposure. Due to the flexibility that life insurance can present, it offers important aspects that shouldn’t be overlooked when creating… Read more »

Permanent Life Insurance: Policy Loans Provide a Living Benefit

Dylan Habeeb- Products and Case Design The words “life insurance” are generally associated with funds available at death. While this is true, there are also benefits to permanent life insurance that can be taken advantage of during one’s life, such as utilizing policy loans. A policy loan works by borrowing money from the insurance company… Read more »

Putting the Freeze on Fees

Martha Petitjean – Executive Benefits Coordinator Executive Benefits Network provides fee-free access to client’s financial information, including illustrations and annual reports. This is not the case with most companies. As illustrated by Peter Katt & Company’s article, Quagmire of Life Insurance Policy Service*, access to information about financial products is not common in the industry…. Read more »

BOLI / COLI Case Study: Supports the Bank and its Community

Background: The bank initially purchased BOLI on a few of its executives and directors to informally finance the cost of deferred compensation plans. Later, the bank decided to purchase additional BOLI (on a Guarantee Issued basis) on all of its existing officers where the bank was the owner and sole beneficiary without establishing new or… Read more »

Split-Dollar Plans and Net Amount at Risk Considerations

Andrew Bainbridge- Client Service Specialist Employer owned split-dollar life insurance is a method of sharing both the obligations and benefits of life insurance with an employee while also providing an incentive for retention of key-employees. For the purposes of this article, assume the employer is the owner of the policy and is providing an interest… Read more »

Are Nonqualified Defined Benefit Plans (SERPs) Still Relevant?

Dylan Habeeb – Presentation and Case Design Specialist The current problem facing Defined Benefit Plans (both Qualified and Nonqualified) in the corporate market: It is estimated that 93% of Qualified Defined Benefit Plans are underfunded. Companies are getting rid of and amending Qualified Defined Benefit Plans due to the low interest rate environment and having… Read more »

E-Filing Now Available for Top Hat Plan Statements

On September 30, 2014, the Department of Labor’s Employee Benefits Security Administration (DOL/EBSA) published a proposed regulation that would require electronic filing of “top hat” plan statements. A top hat plan is a nonqualified plan that is unfunded, covers a select group of management and/or highly compensated employees and allows the participant to defer income… Read more »

BOLI/ COLI Case Study: Supports Continued Operations and Cash Need

Background: Prior to September 11, 2001, the airline industry went into a deep recession and many airlines were struggling. Cash flow was king and retaining key executives was paramount. This company implemented a nonqualified voluntary deferral plan to rectify the low government limits placed on 401k annual contributions. The participation was good as executives desired… Read more »

BOLI / COLI Case Study: Supports Business Succession and the Executive’s Family

Background: The bank implemented a Salary Continuation Plan as a way to reward and retain certain key executives. The Bank purchased BOLI as way to informally finance this benefit plan while also providing key person protection for the Bank. Need: One of the bank’s top executives passed away suddenly. Based on the Salary Continuation Plan,… Read more »