PAY LIFE INSURANCE PREMIUMS THROUGH COMPANY FOR BUSINESS OWNER AND EXECUTIVES. DEDUCT PREMIUMS AS BUSINESS EXPENSE.

1. Presented for
Presented by
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Agent Name Fillable
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January 28, 2019

2. 1The selected employee applies for and owns a
life insurance policy on his or her own life.
4At death, the employee’s
named beneficiary receives
the proceeds. The death
benefit is free of federal
income tax.
3The employee can access
the policy’s cash value on an
income tax-free basis through
loans and withdrawals. The
employer may restrict this
access if desired.
EMPLOYEE’S
BENEFICIARY
EMPLOYEE
EMPLOYER
2Under the terms of a
written agreement, the
employer pays the annual
premiums, either directly or
by way of a cash bonus.
These payments are
deductible (as long as the
amounts are reasonable)
and are considered
additional compensation to
the employee.
INSURANCE
POLICY
ON
EMPLOYEE’S
LIFE
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January 28, 2019

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EXECUTIVE BONUS ARRANGEMENTS
January 28, 2019