Factors to Consider when purchasing defined benefit plan insurance
- Life product specific to IRS Section 412(e)(3)
- Qualified defined benefit funded 100% by insurance
- Offers tax deduction for life insurance
- Annual imputed tax builds basis in plan assets
- Offers partial tax free distribution at retirement
- Highest qualified plan deduction available
- Increase deduction offsets additional mortality cost
- Silver bullet for some situations, dilutes earnings in others
- Complex product requires an experienced expert
- Essential consumer compares to other qualified plan options