salary continuation plan

salary continuation plan definition - business

salary continuation plan

An arrangement in which an employer agrees to continue payment of an employee's salary for a specified time at the employee's death, retirement, or disability. The employer may self-insure the plan or purchase a life insurance policy on the employee with the employer as beneficiary. Proceeds from the policy would go to pay future salary benefits.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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