Protect Your Key Associate Employees and Your Business
Executive Benefits are designed to do two very important things. One purpose is to attract and retain key personnel and the other is to protect your business in the event of the untimely death of one of the key partners, management or other key personnel of your company. Below is a detailed summary of the executive benefits available for you to implement either on a voluntary basis or as a company paid benefit. Most employers find they can implement these benefits as an employer paid benefit at little or no cost because of the tax benefits.
Life Insurance: Your business is named as the beneficiary and pays the premiums. Benefits and premiums are tied the value you have established through financial records. Benefit payments are made to the business to help minimize financial loss should your business lose the insured (key personnel) due to death.
Buy-Sell Agreements: Protecting a business after death of a key employee can also be accomplished with Buy-Sell Agreements (also known as Continuation Agreements) which are tied to and funded by life insurance policies. The agreement sets out the details of the transfer of business interest by the executive (or his/her estate) upon a certain triggering event--usually, disability, retirement or death. The surviving or continuing business owner or partner can rest assured knowing they will be able to purchase the key associate's share without interference from the survivors of the associate and his/her estate.
Additional Enhanced Ancillary Benefits: Typical group long-term disability insurance and supplement life insurance benefit packages usually only cover a fraction of an executive's high income. Providing a customized supplemental life insurance and/or carve out disability to key employees is an important part of the Executive Benefit Package.
Please contact Sheridan Benefits for information on the best Executive Benefits for your company.