What Is a Split-Dollar Life Insurance Plan and How Does It Work?

What Is a Split-Dollar Life Insurance Plan and How Does It Work?

by Nick Reiter, February 15, 2022

A split-dollar life insurance plan is a valuable arrangement that you might want to consider. The life insurance plan shares policy costs and proceeds. How does a split-dollar life insurance plan work? What types of split-dollar plans are available?

A major concern for many people is plunging their households into financial hardship when they die. Purchasing a life insurance policy can help avert that problem. If you hold a critical role at the company you work for, the company might want to retain you for as long as possible. In that case, the company might chip in to help secure your family’s financial future when you pass away and a split-dollar contract would come into play.

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