Voluntary Benefit

Voluntary Benefit Strategies are best used when some of the top level employees do not have enough life insurance or long term care insurance protection. At the same time they are often concerned about having these benefits to carry in to retirement. We help these valuable members of any team to design their strategy to have a life insurance policy with a rider that converts it to a long term care insurance policy for a substantial savings.

The Voluntary Benefit Strategy allows a person to put extra money aside via payroll deductions and helps them to save first instead of trying to save what is left of each month. Many of our clients are great at their jobs but need some structure to enhance their savings. This strategy is optimal when an employer wants to make a contribution to their unique strategy. We share several different strategies for various employees that have different amounts of resources and needs.

When we ask business owners, if they had to go to the memorial service or funeral of one of their key people, would they want to know that they could provide more for them than their last payroll check. They usually say yes. To implement a voluntary benefit strategy we have 3 easy steps.

  1. Establish a census of who you would provide for?
  2. Establish if you as an employee will match any contributions? Employers typically provide a match of $3,000 to $20,000 per year for these programs.
  3. Establish the amount of benefit each employee would need (optional = including providing for the company key person life insurance as a way to provide for the business in the loss of a key person

We often do several drafts before we get it right for business owners because there are many variables that have to be perfect. Once completed and established every one gets back to work and knows that they are being looked out for. The business owner creates good will with its team and the employees know that their employer is concerned about their well being and success too

We will be happy to show in more detail this can be a great value for your team.

1 The information provided is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties. We are not authorized to give tax or legal advice. Individuals are encouraged to seek advice from their own tax or legal counsel.