: A contract defines which party owns the policy, who pays the premiums, and how the death benefit and cash value are divided. The Split :
: Often, the employer pays all or most of the premiums. split-dollar life insurance
: It serves as a high-level executive incentive or a tool for wealth transfer in estate planning. Main Tax Structures : A contract defines which party owns the
: Upon the employee's death, the employer is typically repaid its premium contributions first, while the employee's beneficiaries receive the remaining balance. Main Tax Structures : Upon the employee's death,
Split-dollar life insurance is not a specific type of policy, but rather a between two parties—typically an employer and a key employee—to share the costs and benefits of a permanent life insurance policy. How It Works
The IRS regulates these arrangements under two primary regimes based on who owns the policy: What is Split Dollar Life Insurance? | Guardian