Business Preservation Planning | Split Dollar Arrangement

In a split-dollar life insurance agreement, the employer and employee share the premium payments, death benefits, and cash value of the policy. The ownership of the policy can be structured in different ways depending on the type of split-dollar arrangement used. 

Split-dollar life insurance arrangements are often used by employers to provide key employees with life insurance coverage while also providing the employee with a way to accumulate cash value in the policy. It is also used to provide a way for an employer to recover the cost of premiums paid on behalf of an employee.