Deferred Compensation Plan
The Deferred Compensation Plan is a contractual arrangement whereby a key employee, usually in a high income tax bracket, will receive a guaranteed number of fixed payments, beginning at retirement, in place of current salary increases or cash bonuses.
Cash value life insurance from AMH Financial provides an ideal means to provide the cash needed for Deferred Compensation Plan. The policy's cash values can provide needed funding for required payments when the employee retires, and the death benefit can be used if payments are to the employee's beneficiary.