Split-dollar Life Insurance Apr 2026

: 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

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 : Defines whether the employer or employee owns the policy

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. Core Mechanisms In these arrangements, one party (usually

Split Dollar Life Insurance Using Economic Benefit or Loan Regime

The structure determines tax treatment and ownership control.