Split Dollar Insurance

Split dollar is a very creative way of covering yourself and your key employees. As the name suggests, it literally splits the cash value from the value of the death benefit while the employee is still active in business. For example, your key employee (yourself in many cases) decides to buy life insurance and have the premiums paid by the company. Again, a cash value accumulating policy is used.

Upon the death of your employee, the face amount (death benefit) is paid to the beneficiary (normally a spouse or family member). The cash value inside the policy is paid to the company to reimburse them for the premiums paid into the policy.

Thus, as the name suggests, split dollar. The company is repaid its cost for the life insurance policy and the key employee’s family receives the death benefit (face amount). Please allow one of our qualified advisors help assist you and your business with the right type of life insurance plan.