Split-dollar Life Insurance May 2026

: It serves as a high-level executive incentive or a tool for wealth transfer in estate planning. Main Tax Structures

: Upon the employee's death, the employer is typically repaid its premium contributions first, while the employee's beneficiaries receive the remaining balance. split-dollar life insurance

: Often, the employer pays all or most of the premiums. : It serves as a high-level executive incentive

: A contract defines which party owns the policy, who pays the premiums, and how the death benefit and cash value are divided. The Split : who pays the premiums

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