Executive & Ancillary Benefits

The additional benefits provided in an executive benefits package include executive bonus plans and key-person coverage. There are fewer discrimination rules with these plans which allow them to be available to only select employees. The ancillary benefits that can be offered to all employees or only certain groups of employees include group or individual life & disability insurance.

Executive bonus plans are typically used as a type of deferred compensation arrangement for a key employee, whether it's a partner, executive, or top salesperson. The purpose of this plan is to provide additional compensation to this individual over time, which incentivizes he or she to stay at the organization. The benefit for the business is that it supports long-term growth and stability. This concept is oftentimes referred to as golden handcuffs. 

Key-person coverage is an insurance policy to protect the business in the event a key employee cannot work due to an illness or injury, or passes away prematurely. An example of this may be a top salesperson whose untimely death or inability to work causes harm to the company due to a drop in revenue or loss of customers. The insurance policy will provide valuable cashflow to help reduce the financial impact of the nonworking employee.

Group life & disability insurance are inexpensive plans that help create a comprehensive benefits package for a business. Many employees rely on their employer to provide these benefits and it can be very cost-effective when done with group products. 

If you have questions about these ancillary benefits, please contact us at (973) 971-0002.