All business entities are eligible, including sole proprietors, C and S corporations, partnerships, and limited liability companies. However, the business must have stable income, as fluctuating income may lead to funding failure.
Why Is a Fully Insured Pension Plan so Appealing to Small Business?
By design, this plan requires significant cash outlays, so a fully insured pension plan works best for a business entity with few employees. Consider this question when reviewing a census — "Does my client have three or fewer employees for every key employee?" If the answer is yes, you may have the ingredients for a good fully insured pension plan.
What Key Facts Do I Need to Know about My Client to Determine Suitability for This Plan?
Caution: A potential problem may arise in the event
of a standard termination where the sole intent of
the client is merely to incubate the policy for
a few years and then distribute the policy.
This is an issue that must be evaluated
carefully by the client's attorney.
To provide your clients with the best plans for their circumstances, Ohio National's Advanced Sales Department or an approved third-party administrator (TPA), can custom design each plan, based on the detailed information provided in Ohio National's Request for Proposal (Form 3405), or the form used by the TPA. The proposal takes into account such factors as definition of eligibility, vesting schedules, and definition of compensation, etc.
Ohio National is not affiliated with, nor does it endorse or sponsor, any particular prospecting, marketing or selling system.