If your business wants to reward a co-owner or key executive with low-cost life insurance, can you do so without providing that same benefit to the other employees?  Split Dollar Life Insurance Plans allow you to do just that. In fact, Split Dollar Plans offer benefits for both businesses and select employees. Such an arrangement can help you attract and retain employees, reward key executives, fund buy-sell agreements and fund severance packages as well as certain other benefit plans such as deferred compensation or stock purchase agreements.


Split Dollar Life insurance is an arrangement in writing between an employer and an employee to share the premium costs, death proceeds, cash value and other benefits of a life insurance policy by both parties joining together to purchase an insurance policy on the life of the employee. The actual life insurance policy used can be whole life, universal life, second-to-die (survivorship), or any other cash value policy. Split Dollar Plans can be customized to meet the objectives of both the employer and the employee.  As a result, they can be a useful tool to attract, retain and motivate key employees by providing a way for them to secure low-cost life insurance protection.


Be sure to consult with your agent or other trusted advisor to learn more about the advantages, disadvantages, potential tax consequences and costs of offering Split Dollar Life Insurance Plans.



*Note:   Please seek the advice of your agent and other trusted advisors when considering split dollar life insurance plans for employees of your business. There is a wide array of life insurance products available in today's marektplace and it is impossible to cover each in depth here.


*With all life insurance policies any/all guarantees are backed only by the claims paying ability of the individual carrier.


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