Key Person Retirement Plans
This is a non-qualified retirement plan offered to a company’s highly paid executives. There are no limits on the amount that the company can contribute. The money cannot be assessed until the employee leaves the company or retires. Tax liability will be deferred until money is taken out.
Key Person Life Insurance
This type of life insurance policy is bought by a company or business entity on the life of a key individual that, at will, in the event of his or her death, offsets a loss in earnings. This policy will ensure the ability to provide funds necessary to find, hire and develop a replacement.