MKA Executive Planners Blog

While there are many reasons that a Board should consider, design and implement supplemental benefit plans for their top executives, professionals and performers, this discussion will focus on five of them.

So, you are a top executive at a large healthcare, not for profit or other form of business organization.  Because of the headline grabbers, most people think you are a fat cat, overpaid and sitting on top of the world.  That may be true for the few on the front page, but at a closer look is, quite often it is the other way around. 

Money?  Pensions?  Supplemental Retirement Plans (an MKA commercial)?  Health?  Family?  Activities?  Purpose? 

The primary factor that makes life insurance a potential retirement savings option is the tax favored status afforded life insurance.  With proper policy design, the buildup of cash value in the policy is not subject to taxation, and most policy distributions are not subject to tax provided the policy remains in force until death.  The taxation of life insurance, when properly designed and monitored, is much like that of a Roth IRA.  Banks have utilized cash value life insurance for years to enhance their after tax rate of return.