■ Business Reasons:

– Enhances employee loyalty

– Helps attract and retain quality employees

– Motivates employees

– Provides retirement security for employees

– Reduces the company’s current tax obligation

■ Tax Reasons:

– Contributions to the plan are tax deductible

– Contributions are not currently income taxable to the employees

– Plan earnings grow tax deferred until withdrawn

– No income tax on net insured death benefits

■ Retirement Reasons:

– Savings at retirement

– Distributions can be rolled to an IRA and stretched over beneficiary’s lifetime

■ Protection Reasons:

– Generally protected from the claims of creditors

– Guaranteed retirement benefits*

– Income tax free death benefits*