Split-Dollar Plans


A business split-dollar life insurance plan is not a type of insurance policy but rather, when used by a business, is an arrangement that allocates life insurance policy benefits and, in some cases, premium costs between an employer and a valued employee.


In a typical business split-dollar life insurance plan, an employer assists one or more selected employees to purchase needed life insurance protection by paying all or a portion of the premiums, the total of which the employer will ultimately recover from the policy benefits.


As a result of this premium and benefit sharing arrangement, the employee receives valuable life insurance protection at a reduced out-of-pocket cost, while the employer eventually recovers its share of the premium costs from the policy's cash value or death benefit.


A business split-dollar life insurance plan is an arrangement under which an employer and a valued employee agree to share, or split, the premiums and benefits of a life insurance policy.

jeff coenen
david pollard
greg toscano
kyle johnson
mark peterson