Intended to strengthen the ties between your company and its vital executives, this account allows your company to purchase a life insurance policy on an executive, and name itself as the owner and beneficiary. At retirement, the executive receives the SERP benefits, or in the event of death before retirement, the executive's heirs will either receive annual income or a lump sum payment from your company.
- Plan has minimal ERISA requirements
- Participation is determined subjectively
- The plan can be designed so you can recover its cost
- Your company elects to use life insurance to indirectly fund the company's deferred compensation program
- Acts as "golden handcuffs" for key personnel
- The policy is an asset on the company balance sheet
- The company's cash value accumulates on a tax-deferred basis
- The plan can be tailored to meet the executive's individual needs
- Retirement income is accumulated without current taxation to the executive (Funds are taxable when received)
- The plan, through the policy's death benefit, can be self-completing in the event of the executive's death
- Not A Deposit
- Not Guaranteed By The Bank Or Its Affiliates
- Not FDIC Insured
- Not Insured By Any Federal Government Agency
- May Go Down In Value
- May Be Purchased From Any Agent or Company and the Customer's Choice
Will Not Affect Current or Future Credit Decisions
Personal and business insurance products are available through First Horizon Insurance Services, Inc. (FHIS), a subsidiary of First Tennessee Bank National Association (FTB). CA License #OD12174. In Tennessee and Mississippi, personal and business insurance products are available through First Tennessee Insurance Services, Inc. (FTIS), a subsidiary of FTB. FTIS and FHIS may transact insurance business only in the states where they are licensed or where they are excluded or exempted from state insurance licensing requirements.
Read additional information about insurance privacy policies and practices for certain states.