Benefits And Risk Management Planning
401K Retirement Plan
A retirement savings program permitted by the Internal Revenue Code that allows a participant to defer receipt of compensation and taxes by contributing a percentage of salary to a qualified trust.
Buy - Sell Agreement
A contract to purchase and sell a business at a predetermined price upon specific future events — usually the owner's death, retirement or disability.
Executive Bonus Incentive Plan
A way for employers to provide extra compensation for selected key employees by paying the premiums of a life insurance policy that the employee owns outright.
Salary Continuation Incentive Plan
An arrangement, usually funded by life insurance, whereby an employee may contract to work for a specified period of time, refrain from engaging in competitive business, and be available as a consultant after retirement. In return, an employer promises to pay the employee retirement, disability or death benefits some time in the future.
Split Dollar Incentive Plan
A life insurance program that divides ownership, premium payments, and policy benefits between two parties (usually an employer and employee) in some predetermined way.
Reverse Split Dollar Incentive Plan
A life insurance plan, arranged between an employer and employee so that the employee owns the policy and "rents" part of the death benefit to the employer for a specified time. The "rent" is the cost of the policy's term insurance.
Disability Income Benefit Plan
Insurance designed to provide income should an employee become disabled and unable to work due to sickness or accident.
Business Overhead Expense Program
A disability income insurance policy that covers normal business overhead expenses if the owner becomes disabled. Business overhead expense protection helps keep business assets from being depleted.