Insurance-Based Retirement Plans

Insurance-based retirement plans are a great way for employers to honor and retain top employees. When you help to supplement your employees’ retirement funds and provide death benefits to their survivors, you show that you appreciate them and want to reward them and those that matter most to them. And by giving your key employees more incentive to stay on board for the long-term, you’ll save yourself money, time, and frustration spent recruiting and training new talent.

If this all sounds great to you, you may want to consider including insurance-based retirement plans (IBRPs) in your benefits package. IBRPs can provide life insurance protection and a way for employees to accrue supplemental retirement income. In addition, a supplemental executive retirement plan (SERP) gives your employees a (tax-free) opportunity to save more for retirement once they’ve maxed out their contribution to a qualified plan. In other words, this is a way to help employees of your choice build the retirement of their dreams—beyond the 401(k) they already have in place. SERP plans allow you to choose either a fixed amount or a formula-based amount for your employees, in accordance with their compensation and years of service.

What Are The Benefits Of An Insurance Based Retirement Plan?

Are You An Employee?

If you’re an employee with an insurance-based retirement plan, you may receive the following benefits:

  • Obtain deferred tax on income until you receive compensation under terms of plan
  • Earn another source of supplemental retirement income
  • Enjoy unlimited deferrals, plan permitting
  • Receive recognition for your contributions
  • Protect your family through your working years by the limited death benefit guarantee

Are You An Employer?

If you’re an employer providing your employees with an insurance-based retirement plan, you will receive the following benefits:

  • Choose which employees receive benefits—as well as when they receive them and how much they receive
  • Enjoy a powerful recruiting and retention tool
  • Receive tax deduction when employee gets compensation from plan
  • Recover out-of-pocket costs through the life insurance death benefit

Have questions about insurance-based supplemental retirement plans? Our expert agents can help! Have other business insurance needs? We can help with those, too! Visit our Locations & Contact page and find the Tennessee location and agent nearest you.


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