Employee-owned Split Dollar

Split Dollar in its most basic sense is not an insurance sale, but a method of funding a needs-driven sale. Split Dollar can be the solution for:

	Estate liquidity
	Family survivor income
	Funding for buy-sell arrangements
	Employee fringe benefits
	Temporary insurance needs
	Pre-retirement death benefits and post-retirement income

In the Employee-owned arrangement of Split Dollar, all premiums not actually paid by the employee are considered loans from the employer and subject to Section 7872 below-market interest rate rules.

Producers work with their underwriting staff to assign an imputed interest. A “Pay Tax” checkbox can be used to show the additional amount paid to the employee, approximately equal to the tax liability on the imputed interest.

The Employee-owned Split Dollar module gives you complete flexible with regards to the employee’s portion of the premium and the employer’s bonus options. Termination and repayment options cover the most likely scenarios.