Life Insurance for Business
What is split-dollar life insurance?
Split-dollar life insurance is an arrangement where an employer and employee share the costs and benefits of a life insurance policy. The employer typically pays the premiums and is entitled to recover the premiums from the death benefit or cash value. The employee receives the remaining death benefit.
Key Points
- Split-dollar: employer and employee share costs and benefits
- Employer pays premiums and recovers them from death benefit or cash value
- Employee receives remaining death benefit
- Two types: loan regime and economic benefit regime
- An independent agent can help you evaluate split-dollar life insurance