Split-dollar Life Insurance -

: Often, the employer pays all or most of the premiums.

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

: Upon the employee's death, the employer is typically repaid its premium contributions first, while the employee's beneficiaries receive the remaining balance. : Often, the employer pays all or most of the premiums

The IRS regulates these arrangements under two primary regimes based on who owns the policy: What is Split Dollar Life Insurance? | Guardian who pays the premiums

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