Help retain your key employees and attract new talent by making employer-paid life insurance available to your executives. Executive Group Life (EGL) is a group life insurance program designed to help executives and other senior professionals by providing a generally income-tax-free death benefit for their beneficiaries, as well as the opportunity to accumulate account value to meet future needs. EGL enables most employers to enhance their executive benefits while still minimizing overall benefit costs.
THE EGL ADVANTAGE FOR EMPLOYERS
Executive group life insurance enables employers to gain a competitive edge
via the benefits provided to their executives and senior professionals.
Advantages of an EGL program include:
- Enhanced Benefits: provides life insurance benefit amounts that are
better aligned with the needs of these key individuals, and also offers them a
new and valuable tax-deferred accumulation vehicle which can help fund "living
benefits1
- Benefit Program Cost Optimization: enables
employers to deliver enhanced benefits to executives and senior professionals
while simultaneously helping to control overall benefit costs.
- Flexibility: gives employers wide flexibility in establishing life
insurance benefit amounts for their executives and senior professionals.
- Talent Recruitment and Retention: adds valuable, permanent insurance
coverage to a firm's executive benefit suite, thereby helping the organization
to more effectively compete for talent in the marketplace.
THE EGL ADVANTAGE FOR PARTICIPANTS
Executive group life insurance also provides enhanced benefits for
individuals including:
- High Insurance Coverage Amounts: helps satisfy the higher income
protection needs of executives and senior professionals by providing benefit
levels that are usually higher than those available through the Group Term Life
insurance plans offered by many employers.
- Tax-deferred Accumulation
Opportunity: gives key staff an effective, additional accumulation vehicle
to help fund "living benefits1" such as post-retirement healthcare by building
policy account value in a tax-deferred manner and offering withdrawals tax-free
up to the policy cost basis.
- Portability: allows continuation of
coverage after individuals leave the firm, giving them the opportunity to retain
their Executive Group Life insurance -- and all of the benefits associated with
it -- for the long-term. Costs for portable certificates may be higher than
those for active employees.
- Flexibility: offers covered individuals
additional flexibility to help ensure this valuable insurance evolves with their
changing needs. EGL participants may borrow or withdraw accumulated cash values
from their policy, providing them with another accessible source of funds.
Furthermore, in contrast to many individual insurance policies, EGL participants
incur no charges for surrendering their policy after leaving their
employer.
Prefer to speak to someone about executive group life insurance?
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1Withdrawals and decreases in Face Amount may have tax
consequences. You should consult your tax advisor. Policy withdrawals are not
subject to taxation up to the amount paid into your policy (your cost basis). If
the policy is a Modified Endowment Contract, policy loans and/or withdrawals
will be taxable to the extent of gain and are subject to a 10 percent tax
penalty. Policy loans and/or withdrawals also reduce the cash surrender value
and policy death benefit. Taking a policy loan could have adverse tax
consequences if the policy terminates before the insured's death.
Insurance products issued by Massachusetts Mutual Life Insurance Company
(MassMutual), 1295 State Street, Springfield, MA 01111-0001 and CM Life
Insurance Company and MML Bay State Life Insurance Company, 100 Bright Meadow
Boulevard, Enfield, CT 06082.
Principal Underwriters: MML Distributors, LLC. (MMLD) and MML Investors
Services, Inc., (MMLISI) Members FINRA (www.finra.org) and SiPC (www.sipc.org). MMLD and MMLISI are subsidiaries of
Massachusetts Mutual Life Insurance Company, 1295 State Street, Springfield, MA
01111-0001.
CRN201009-107029