When Life Insurance Is Part of the PackageWhen Life Insurance Is Part of the Package

Charles L. Ratner, national director of Personal Insurance Counseling, Ernst & Young LLP, Clevela

Corporations often ask their advisors to review proposals for nonqualified deferred compensation (NQDC) plans funded with life insurance or proposals for life insurance programs for company executives. The smart advisor will help clients go over these proposals, navigate the current trends and construct product solutions that mitigate risks by anticipating them. Herewith, a guide to that process.

TO FUND OR NOT TO FUND?

When a corporation establishes an NQDC plan for its executives, one of the key decisions it makes is whether to set aside assets to fund the obligations the plan creates. Not all corporations choose to fund their plans. Many tak...