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SPLIT DOLLAR COVERAGE
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What it is:
- Life insurance in which the premium is split
between employee and employer
- Death proceeds and cash value are also split
How it works:
Advantages:
- Provides substantial life insurance to employee
- Offers employers premium cost recovery or
more depending on agreement
- Shares life insurance cost between the employer
and its employees
- Provides tax-free life insurance proceeds
- Established and administered easily - no
formal IRS approval is necessary.
- Offers low-cost permanent life insurance
protection to employee and
may also provide
tax free retirement cash flow
by loans and
withdrawals.
CONCEPTS INDEX
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