In the competitive world of recruiting, standard benefits like matching 401(k)s, Health Insurance with HSA Accounts and disability benefits may not be enough to secure the talent necessary to take your business to the next level. Professional head hunters seem to agree that unconventional perks like performance bonuses, deferred compensation packages and supplemental retirement plans are necessary to land a big fish for your firm. Even offering extras to maintain the key employees you have may also be necessary to keep them from leaving for a better opportunity.
Business owners and other employers understand the value of unconventional benefits, but cash flow may hinder them from hiring major league players. That’s where leverage comes in. That’s where bank loans can fund mid term cash value life insurance policies that can be repaid through the cash values that are accumulating over a ten year period.
The cash value life insurance policy collateralizes the loan, while the business pays the annual loan interest. Over a ten-year period the odds favor the likelihood of positive policy performance to pay back the loan and fund the extra benefits, generally a supplemental retirement plan. Many banking institutions are now aware of cash value life insurance as a solid collateral product. Most banks carry cash value life insurance on their own books as a valued asset. That should say something of it’s worth in a bank’s portfolio.