Before
No Executive Benefit Plan
Risk of losing a talented executive
After
$ 0
mil
Executive retirement benefit vested over 10-year period
Includes survivor and disability benefits for executive’s family
Ralph is known for his skills as a “turn around” specialist and being able to effect positive change as an incoming President. He has demonstrated his value in the very first year of being brought in as CEO of a large manufacturing corporation by moving the company from the verge of bankruptcy to profitability and the ownership wants to create a special benefit for Ralph to keep him performing for the company.
Acru Process
- Complete Underwriting Advocate
- Consult with Executive and Ownership on various Executive Benefit Plan options to tailor the plan best suited to meet the needs of all involved
- Implement new Supplemental Executive Benefit Plan (SERP) by getting approval from internal Legal Council, Ownership and Corporate Board.
Client Impact
- Corporation creates agreement with Ralph to pay him $200,000 annually in retirement if he stays for the next 10 years.
- Ralph’s family is protected in case of death or disability before prior to his actual retirement
- Corporation funds a specially designed Corporate Owned Life Insurance (COLI) contract with $100,000 of annual premium to ensure that funds will be available when benefit payouts begin
