In our June edition of Coffee Break, we shared some tax opportunities that businesses have when funding Asset Care. Simply, the premiums for the long term care portion of the policy can be deducted.
To learn more about this opportunity, check out our June broadcast of Coffee Break.
With this in mind, I want to remind you of a strategy that we have discussed before – the Section 162 bonus. A typical section 162 executive bonus is an agreement between an employer and an employee where a life insurance policy is funded by an income bonus paid by the company on behalf of the employee.
With Asset Care, the policy also includes long term care benefits.
Remember, Asset Care is comprised of two pieces – the base life insurance policy and the continuation of benefits rider (COB). The base portion of the Asset Care policy is where the executive bonus can come into play. As a reminder, the Acceleration of Benefits provision of the base policy and COB are considered long term care insurance which makes it possible for the company to deductible the premiums as health benefits.
For more information on how the executive bonus works, check out our one-pager explaining it.
This strategy is often used as a way to reward and retain valuable employees. But, they can also be used in a golden handcuff or golden handshake type of scenario.
The OneAmerica Advanced Sales team is poised to answer your questions about this strategy and more.
As always, my internal Justin Fox and I are here to support you in any way possible.
Just a reminder about another strategy that is on fire – the million dollar annuity strategy. Learn more about it at https://fridayswithfisher.com/million-dollar-annuity/.
My “big ask” of you for the million dollar annuity strategy is to identify 3 or 4 annuity owners 75 or older who might be viable candidates for our leverage strategy then give us a call.
Fridays with Fisher 
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