When you have finished this chapter, you should be able to
- Identify the major classes of employee benefits that employers provide to their employees, and describe the tax treatment of these benefits
- Explain the statutory requirements that qualified retirement programs must meet
- Identify and explain the characteristics of the funding alternatives available to employers with respect to qualified retirement plans
- Explain the nature of the business-continuation exposure facing business owners and describe the measures used to address this exposure
- Explain the nature of the key-person exposure facing a business organization and describe the measures used to address this exposure
- Explain the purpose and operation of nonqualified deferred-compensation programs and describe the characteristics that distinguish them from qualified programs
In addition to the uses we have examined for individuals, life and health insurance is used extensively in the business world. In previous chapters, we discussed the various types of life and health insurance policies and how they could be used to meet the personal risks faced by individuals. This chapter will discuss the ways businesses use life and health insurance to meet their objectives.
Businesses use life and health insurance for two general purposes. First, most businesses make some insurance available to their employees. It ...