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AIG Corporate InvestorSM variable universal life insurance from American General Life Insurance Company (American General Life) is designed specifically to be used with nonqualified deferred compensation plans.
See Policy and Fund Prospectuses and Performance Information
In today’s competitive business environment, the ability to attract and retain talented employees can mean the difference between success and failure. And although traditional incentive programs can offer attractive perks, the combination of government limitations, red tape and overwhelming reporting requirements can limit the advantages to your organization.
A nonqualified deferred compensation plan is one way to gain a competitive edge by rewarding your most valuable employees — without qualified plan limitations. Because nonqualified deferred compensation is not “tax-qualified,” these arrangements can provide immediate benefits to your company:
- A tool to attract, retain and reward key employees
- Flexible selection of employee participants
- Greater benefits than permitted under qualified plan rules
- No need for prior IRS approval
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- Control of the details to accommodate individual employee needs
- Easy to establish and administer
- Cash values accumulate tax-deferred to the employee if the plan is not formally funded1
- Income tax deduction for the company when the benefits are paid1
Nonqualified deferred compensation plans typically use either a salary reduction or salary continuation technique to fund benefits:
- Allow highly compensated, highly valued employees to defer current salary, or elect to forego a bonus or an anticipated salary increase, to generate additional retirement income
- Use corporate funds to finance the benefits on behalf of the key employee without a reduction of income
- Unlike traditional incentive programs, nonqualified deferred compensation arrangements are not subject to the discrimination regulations or contribution limits found in qualified plans
These plans are, however, subject to specific requirements in order to achieve tax deferral. You should consult your personal tax advisor regarding these requirements.
A nonqualified deferred compensation plan is an ideal tool to attract, retain and reward key employees by offering greater benefits than qualified plans:
- You select the employees you want to include and how much, if any, you want to contribute to the plan
- Taxes are deferred to the employee on cash value accumulations, and you’ll receive an income tax deduction when the benefits are paid1
- No prior approval from the IRS is required, and you’ll enjoy the cost– effectiveness of a plan that's easy to establish and administer
1 Based on current federal income tax laws
Policies issued by:
American General Life Insurance Company
A subsidiary of American International Group, Inc. (AIG)
2727-A Allen Parkway, Houston, TX 77019
Policy Form Number 99301
Variable universal life insurance policies issued by American General Life Insurance Company and distributed by American General Equity Services Corporation, member FINRA, www.finra.org, and a subsidiary of American International Group, Inc. This policy is not available in the state of New York.
The underwriting risks, financial obligations and support functions associated with the products issued by American General Life Insurance Company (American General Life) are its responsibility. AIG does not underwrite any insurance policies referenced herein. American General Life is responsible for its own financial condition and contractual obligations. American General Life does not solicit business in the state of New York. Policies and riders not available in all states.
