Executive Benefits

Finding and retaining the right talent for your organization is key to the success of many companies today. As the competition to attract these people for your company continues to grow, you need to have a strategy to help get and keep theses highly talented and driven employees. APEX can help you design an executive compensation package for your company’s needs.

Annuities

Annuities are contracts between the buyer and an insurance company.  In general, the company promises to do something with the buyer’s money, like grow it or pay it out over a number of years.  The money can grow tax deferred and compound within the annuity contract.  There may also be guaranteed rates of return or a guarantee of payments throughout your lifetime.

Deferred Compensation Plans

Deferred Compensation Plans help executives diversify investments, reduce current income taxes and achieve tax-deferred investment growth. Properly designed plans can also address executive concerns about benefit repudiation, change in corporate control, and corporate insolvency.

Supplemental Retirement Plans

Supplemental Retirement Plans provide executives with additional retirement benefits that are not subject to the government imposed limits on qualified retirement plans. These plans can restore executive retirement benefits to the same percentage of pay received by other employees as well as address the special needs of mid-career hires.

Executive Life Insurance

Executive Life Insurance can deliver pre and post retirement life insurance benefits to executives and are typically lower in cost, with more comprehensive benefits than traditional group plans. These plans can also provide special opportunities for tax-deferred cash accumulation, portability and corporate recovery of plan costs.

Key Man Life Insurance

Key Man Life Insurance is similar to an individual life insurance policy, except that instead of protecting the family of the insured, the policy protects the business of the insured. Many businesses are dependent on one or two key members of the company who have specific knowledge, resources, or client relationships that are irreplaceable.

Executive Disability Plans

Executive Disability Plans help guarantee financial security for executives and their families if a career is shortened by a disabling injury or illness. These plans often supplement or replace group long term policies, providing executives with higher benefit limits, more comprehensive features, and contractual guarantees. These plans can also continue to fund retirement benefits that are often curtailed upon disability.

Long-Term Care Insurance

Long-Term Care Insurance provides non-discriminatory benefits to key employees without imputed or regular income taxation. Premium payments made by the corporation are fully tax deductible.

Charitable Giving Plans

Charitable Giving Plans benefit directors and senior executives who wish to support charities. They also contribute to a company’s positive public image. Plans that use life insurance as a financing vehicle can enable a company to recoup the program costs.

401(k) Look Alike Plans

401(k) Look Alike Plans – A non qualified 401(k) plan with life insurance gives your valued executives the opportunity to defer larger amounts of pre tax income.

Nonqualified Deferred Compensation Plans

Nonqualified Deferred Compensation Plans offer each selected executive to elect to defer a certain amount of future income, either a salary or bonus, until retirement.

Supplemental Employee Retirement Plans (SERP)

Supplemental Employee Retirement Plans (SERP) provide the additional benefits desired by executives and yet the employer maintains control by implementing a plan that imposes restrictions that can be reduced or even cause the loss of benefits for the executive if they leave the firm. This ensures a cost effective method of rewarding and retaining talented employees.

Executive Bonus Plan

Executive Bonus Plan is a way for the employer to bonus the employee an amount of money used to fund a life insurance or annuity policy. The employee simply pays income tax on the bonus applied as premium. In the future, the employee can withdraw against cash values and in the event of his or her death, the family receives the death benefit or in the case of an annuity, the policy value.

Split Dollar Plans

Split Dollar Plans lets you buy the full amount of life insurance coverage you need without paying premiums personally. The business pays the premiums. Your cost is the “economic benefit value” of the life insurance protection. The business is able to recover the greater of the premiums it pays or the policy’s cash value from the policy death benefit upon your death.

Premium Finance Plans

Premium Finance Plans are design to help in the process of estate planning.  Life insurance plays an important role in estate planning.  A premium finance plan is an alternative you may wish to consider if you wish to purchase more life insurance than your current cash resources allow or if you do not wish to liquidate personal assets or investments to cover the cost of life insurance.

Entity Purchase Buy-Sell Agreement

Entity Purchase Buy-Sell Agreement is and entity purchase agreement in which each owner agrees to purchase the deceased owner’s business interest. The business buys a life insurance policy on each owner’s life in an amount that equals his or her respective ownership in the business. The policy proceeds are used to acquire stock from the deceased owner’s estate when a triggering event, such as a death, disability or retirement occurs.

Cross Purchase Buy Sell Agreement

Cross Purchase Buy Sell Agreement is where business owners agree among themselves to collectively purchase the interest of any owner who dies. Using life insurance policies on each other to fund the buyout, each business owner buys a life insurance policy on all the other owners. At the death of an owner, the surviving owners receive policy proceeds and then purchase a pro rata share of the deceased owner’s business interest from his or her estate. The result is that the estate’s non-liquid business interest is converted into cash and the surviving owners now own 100 percent of the business.

No Sell Buy Sell Agreement

No Sell Buy Sell Agreement is similar to other agreements in that the control of the business and voting interest passes to the surviving owners. It differs in that the nonvoting interest in the business remains with the deceased owner’s family or estate. This type of agreement is used when the owners want their heirs to benefit from future appreciation in the company, but they don’t want heirs to have any voting rights or to be able to take control of the business after death.

Trustee Cross Purchase Buy-Sell Agreement

Trustee Cross Purchase Buy-Sell Agreement is used when the number of owners and the number of policies required to fund the plan becomes too complex. This type of agreement is also known as an “escrowed” or “custodian” buy-sell.

Wait and See Buy-Sell Agreement

Wait and See Buy-Sell Agreement is for businesses that aren’t sure whether a cross-purchase or entity purchase agreement is the best option as they are drawing up the plan. A wait-and-see agreement lets the business owners wait until the first death or other “triggering event” occurs to decide whether the business itself or the business partners should purchase the business interest. A wait-and-see agreement lets the purchaser be the business, the owners, or both.