Executive Bonus Life Insurance Plans
Reward your most valuable leaders with a tax-deductible bonus used to fund a permanent life insurance policy they own and keep. A simple, powerful strategy for growing companies that compete for top talent.
100%
Tax-Deductible Bonus
Tax-Deferred
Cash Value Growth
Portable
Executive-Owned Policy
No
ERISA Compliance Required
How It Works
A straightforward five-step process that creates real value for both the company and the executive.
Company Pays Bonus
The company provides a tax-deductible cash bonus to a selected key executive, treating it as a business expense.
Executive Receives Bonus
The executive receives the bonus as ordinary income and recognizes it on their personal tax return.
Permanent Life Insurance
The bonus funds a permanent life insurance policy owned by the executive — not the company.
Cash Value Accumulates
The policy builds substantial cash value on a tax-deferred basis, creating a tangible financial asset for the executive.
Retention Improves
A valuable, exclusive benefit that motivates, rewards, and helps retain your top managers for the long term.
"Executive Bonus Plans reward performance, build loyalty, and strengthen your leadership team for the road ahead."
Key Benefits
Why growing companies choose Executive Bonus Plans to attract and retain top talent.
Tax-Deductible for the Company
Bonus payments used for the plan are fully deductible as a business expense, reducing your company's tax burden.
Cash Value Growth
The permanent policy accumulates cash value on a tax-deferred basis — a growing asset the executive can access in retirement.
Executive-Owned Policy
The executive owns the policy outright, providing full control over the asset and portability if they change roles.
Powerful Retention Tool
Tie vesting schedules or bonus structures to tenure to create golden handcuffs that keep your best people committed.
Death Benefit Protection
The life insurance component provides a meaningful death benefit to the executive's family — a benefit no 401(k) can match.
Who Is This Plan For?
Executive Bonus Plans are ideally suited for business owners who want to reward specific individuals without the complexity of a qualified retirement plan.
- C-Corps, S-Corps, LLCs, and partnerships
- Companies with 1–5 key executives to reward
- Businesses that want a simple, non-ERISA plan
- Owners looking to supplement retirement benefits
- Fleet operators competing for experienced managers
No ERISA Headaches
Unlike 401(k)s or pension plans, Executive Bonus Plans are not subject to ERISA regulations — no discrimination testing, no required minimum distributions, no plan administrator.
The company simply pays the bonus, deducts it, and lets the executive manage their own policy. Clean, straightforward, and effective.
Ready to Reward Your Key Executives?
Our licensed advisors will walk you through a customized Executive Bonus Plan designed for your company's goals and budget — with no obligation.
Insurance products and services described on this page are offered through licensed advisors affiliated with BridgePoint Financial Services. Executive Bonus Plans involve tax implications; consult your tax advisor before implementing. Coverage availability, terms, and conditions vary by state and individual underwriting. This page is for educational purposes only and does not constitute a binding offer of insurance or financial advice.