"c" corporations can now take advantage of a great planning tool for their senior managers and rank and file employees. Section 79 allows a company to offer permanent life insurance to their employees. The financial advantage to the senior management employee starts with partial income attribution on the amount paid by the employer for the permanent coverage and continues with a tax-free supplemental retirement income enhanced by some tax-free death benefit. This is a WIN, WIN, WIN! And to top it all off, the executive is NEVER an unsecured creditor of his employer because he or she is the contract owner.

In a recent case we illustrated a $100,000 annual premium payment for five years for the 57 year old president of a non-profit. The result was a tax-free income stream starting at age 65 of $41,000 per year for 20-years and the benefit of $1.3M of life insurance during his working years. His income attribution was approximately $60,000 per year during the funding years.

Comparing this to just taking $1000,000 of bonus income for five years and investing the after-tax funds at 5% net ($60,000) per year), his retirement income for 20-years would be $31,000 per year - a 25% reduction; and he doesn't have the benefit of the life insurance!

We have a complete, turn-key illustration system for this program and the full support of National Life. Contact my office immediately if you have a prospect.