Voluntary Deferral Plan
Vehicle for the deferring of unneeded current income for a later date, such as retirement, providing the following benefits: There is no tax on earnings of the plan until distributed; Employee is able to defer compensation in excess of the amount subject to the limitations of qualified plans since the voluntary plan is a non qualified plan; The amount the employee defers can be matched by the employer; The employer and employee have flexibility in designing BENEFITS and VESTING requirements; The employer can select employees to participate in the plan since it is a non qualified plan and does not have to comply with the antidiscrimination provisions of qualified plans found under the EMPLOYMENT RETIREMENT INCOME SECURITY ACT (ERISA); Life insurance can be used as the funding instrument and, as such,the employer can receive the death benefit, thereby recovering its matching contribution to the plan.
Popular Insurance Terms
Coverage underwritten on members of a natural group, such as employees of a particular business, union, association, or employer group. Each employee is entitled to benefits for hospital ...
new dividend option under which the policyowner allows the dividends from the participating policy to be applied for the purposes of accumulating cash values. ...
Unexpected, unforeseen event not under the control of the insured and resulting in a loss. The insured cannot purposefully cause the loss to happen; the loss must be due to pure chance ...
Describing automobile accidents that are considered to be the results of the negligent acts of the insured driver and are included in the driving record of that insured. ...
Buildup of policy cash value, as distinguished from the death benefit. A policyholder has a choice between surrendering the policy for its cash surrender value or keeping it in force for ...
Projected percentage of the earned premiums that will be required by the insurance company to pay for the incurred losses plus the loss adjustment expense. ...
Re-registration of existing shares when there is any change in the name of the owner (s). Such a circumstance may occur when the owner (s) of the shares gives these shares to another ...
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State law that stipulates that goodwill as an admitted asset cannot be greater than 10% of adjusted surplus. ...
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