In these arrangements, one party (usually the employer) pays some or all of the premiums, while the other (the employee) provides the life to be insured and designates beneficiaries for a portion of the death benefit. : Specifies which party pays the premiums.
The structure determines tax treatment and ownership control. split-dollar life insurance
: Defines whether the employer or employee owns the policy. In these arrangements, one party (usually the employer)
Split Dollar Life Insurance Using Economic Benefit or Loan Regime : Defines whether the employer or employee owns the policy
: Outlines how the death benefit and cash value are split upon death or termination.
Split-dollar life insurance is not a specific type of insurance policy, but rather a between two parties—typically an employer and an executive—to share the costs, ownership, and benefits of a permanent life insurance policy. Core Mechanisms
: Ensures the funding party (employer) recovers its contributions from the policy's cash value or death benefit. Common Structures