Terry Bork CLU ChFC, President   |   Aurum Insurance Services   |   D: 440-605-7230   |   C: 440-666-6032   |   tbork@auruminsurance.com   |   www.auruminsurance.com

Company Sponsored Individually Owned

As employers look for cost effective ways to help attract, retain, reward, and motivate highly compensated key employees, a company sponsored individually owned insurance plan could be an ideal solution.  The employer funds an Accumulation Designed Life Insurance policy (ADLI) for selected key employees, creating a Company Sponsored Insurance Based Retirement Plan.

Company Sponsored Insurance Based Retirement Plan

  • The plan is discriminatory
  • The employee is not subject to employer financial difficulties
  • There is no accounting, administrative, or compliance issue for the employer
  • Contributions are tax deductible

Employer Contributions

The employer can make bonus contributions into the policy based on various criteria consistent with overall compensation and benefit objectives.

Bonuses may be contributed based on individual or group performance factors, to make up for lost qualified plan contributions, or in the form of an employer match.

To aid in retention, the employer may restrict access to employer contributions until a specified future date.

The bonus may be “grossed up” to offset the additional income taxes generated by the bonus, essentially resulting in a “zero cost” to the employee.

Benefits to the Employee

  • The policy is individually owned and is portable
  • The employee can make additional after-tax contributions into the policy
  • Policy cash value is insulated from financial claims against the employer, and is creditor protected in most states
  • Company sponsorship may lower overall policy expenses
  • Increased liquidity and enhanced cash value options may be available
  • Potential underwriting advantages


A Company Sponsored Insurance Based Retirement Plan can provide employers with a flexible cost effective method to aid in Attracting, Retaining and Rewarding top executive talent, and can benefit plan participants by providing policy pricing, features and benefits typically not available to individuals.

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