Fund a Section 162 Plan With This Kind of Policy

Any permanent or even term coverage can be used to fund a Section 162 Plan although almost always some form of permanent insurance is indicated to pay-up the policy by the time the insured reaches retirement age. Consider a policy on which cash dividends, the surrender of paid-up additional insurance, or there is sufficient cash value that the employee can withdraw or borrow that can be used offset the employee’s tax on the premiums paid by the employer.

Learn more about Split-Dollar plans here.

Discover more about Section 162 plans.

Visit Lifequotes to view our wide array of different policies.

Reproduced with permission.  Copyright The National Underwriter Co. Division of ALM

Leave a comment

A Quick and Easy Life Insurance Needs Calculator