Retain and Reward Your Best Employees

Many small- and mid-size business owners find it challenging to build a competitive benefits package for executives. The restrictive executive bonus arrangement (REBA) lets you reward valuable employees in a way that builds loyalty to your business and help them with retirement through employer-paid premiums used to purchase insurance on the executive’s life.

A REBA consists of a life insurance policy subject to specific restrictions:
1. The employee owns the policy, is the insured, and names the beneficiary.
2. The employee requires the employer’s consent to access any available cash value.
3. Choosing to leave the business requires the employee to pay back the employer all or part of the bonuses used to fund the policy. If the employee remains with the business until a predetermined date, the restrictions on the policy will be lifted.