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What Are Executive Bonus Plans?

Executive Bonus Plans, often referred to as section 162 Bonus Arrangements, are a simple and cost effective way for the employer to provide an employee with supplemental retirement income. In this situation the employer provides a bonus to the employee in the form of a premium payment on a life insurance policy. HOW IT WORKS:…
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What Is A (SERP) Supplemental Executive Retirement Plan?

An employer uses a SERP to provide additional retirement income to a key employee. A SERP is the opposite of a salary deferral plan. Its a non-contributory plan, meaning the employee does not contribute to a SERP, rather the employer is responsible for funding the benefit. Its an excellent way for an employer to compensate…
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Why Long Term-Care Coverage?

Can I Use My Life Insurance To Pay For Long-Term Care? Life Insurance Policies with Long-Term Care Benefits Sometimes long-term care benefits are included in a life insurance policy or are sold as a rider to a life insurance policy. With one version called "Accelerated Death Benefit", your insurance company pays you a reduced amount…
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Funding Options for Non-Qualified Deferred Compensation Plans

Unlike a qualified plan, where money is set aside and segregated for the benefit of the plan participants and is protected from the creditors of the business, a non-qualified executive benefit plan can only be "informally" funded. This means that any asset used to fund a non-qualified plan is subject to creditors of the business.…
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Who Pays For Long-Term Care Expenses?

Will Medicare Pay For Long Term-Care In A Nursing Home? Most long-term care delivered in nursing homes is provided to people with chronic, long-term illnesses or disabilities. The care they receive is personal care, sometimes still referred to as custodial care. Medicare does not pay for this kind of care. It pays less than 10%…
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