The company can set up an Executive Bonus plan to provide a Life Insurance Policy for a given employee. The amounts awarded and employees given them to with this plan are determined entirely by the company. Further, the Executive Bonus plan is easily incorporated and manageable.
Through this plan, the compensation is identified as current income by the employees and they are able to add to the plan, as well. The added amounts are deferred from taxes and are not taxed when they are taken out of the plan. In some cases, Guaranteed Issue is also an option. Appealingly, the Executive Bonus plan is a way around IRC409A and 457 and there is not a restriction on additions.