Better life insurance for your employees, at a lower net cost.
Your 401(k) plan can let employees buy term or permanent life insurance with pre-tax dollars. For owners and key people, permanent life insurance can be designed to fund benefits and business plans.
Qualified Life: coverage through the 401(k)
Bought on your own, a $1,000 term premium takes about $1,300 of pre-tax pay. Through the plan, with unisex rates, a pre-tax premium and an employer match, the employee's net cost in our example is $282.
- Pre-tax or tax-deductible premiums
- Unisex rates, typically 5–10% lower
- Employer match where the plan offers one
- Spousal coverage and conversion to permanent coverage
Tailored plans built on permanent life insurance
When designed for it, cash value life insurance can fund benefits that a qualified plan can't. Each plan is designed around the business, its owners and its tax situation.
Executive benefits
Reward and retain key people beyond qualified plan limits, with cash value that can supplement retirement income.
Non-qualified deferred compensation
Informally fund a deferred compensation promise with company-owned permanent life insurance.
Key person coverage
Protect the business against the loss of an owner or key employee, with tax-deductible or pre-tax options where available.
Buy/sell funding
Fund a buy/sell agreement so owners or heirs are paid and the business continues.
From plan review to enrolled employees
- 1Plan reviewWe confirm your plan document allows life insurance and how premiums can be paid.
- 2Setup with your TPAAIB coordinates carrier, trustee and administrator approval.
- 3Employee educationEmployees quote and compare online, with a professional to answer questions.
- 4Application and serviceAIB submits applications and services policies, including REB reporting.
See what your plan could offer
A short call covers your plan, your workforce and which options fit.