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Small Business & Executive Bonus Plans
Reward, Retain, and Protect What You’ve Built
Your business is more than revenue and operations — it’s leadership, loyalty, and long-term vision.
At Seeds of Security Life, we partner with business owners to design strategic life insurance solutions that help protect key people, strengthen retention, and support long-term growth.
Executive Bonus Plans offer a flexible way to reward and retain select employees or executives — while giving them meaningful, portable life insurance protection that includes Living Benefits.
It’s a smart strategy that benefits both the business and the individual.
How It Helps Your Business
Attracts and retains top talent
Rewards key leaders in a meaningful way
Provides tax-deductible bonus compensation
Strengthens long-term loyalty and stability
Supports succession and continuity planning
Benefits for the Employee
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Portable life insurance coverage they own personally
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Permanent protection options with cash value growth
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Access to Living Benefits if diagnosed with a qualifying illness
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Financial flexibility over time
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Security beyond employer-provided group coverage
Benefits for the Employer
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Attract and retain top talent with compensation package
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Tax-advantaged compensation strategy
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Flexible plan design with customizable contributions
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Simple to implement and no administrative burden
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Enhanced company culture with investments in employees
FAQ
An Executive Bonus Plan (often structured under IRS Section 162) is a strategy where a company provides a bonus to a selected employee to fund a life insurance policy.
The employee owns the policy, controls the beneficiary designation, and may benefit from long-term cash value growth, depending on the policy type.
Not at all. These plans are straightforward and flexible.
We guide you step-by-step and coordinate with your tax and financial advisors to ensure the structure aligns with your business goals.
Yes. Many permanent policies used in Executive Bonus Plans include Living Benefit riders.
This means the insured may access a portion of the death benefit if diagnosed with a qualifying critical, chronic, or terminal illness — adding an additional layer of protection.
No. Executive Bonus Plans are commonly used by small and mid-sized businesses.
In fact, they’re especially powerful for closely held businesses looking to reward and retain key leaders without the complexity of traditional qualified plans.
