A section 162 Executive Bonus plan is a way for business owners or companies to provide additional supplemental benefits to key-employees or executives of their choice in a manner that is simple in design and easy to implement. As the name suggests, a section 162 executive bonus plan is specifically designed to attract, reward, and retain executives and high-level employees.

Indexed Universal Life (IUL) Insurance can serve as a powerful tool and key-component for this type of strategy. A section 162 executive bonus plan utilizing life insurance has several advantages including: