What Is A Split Dollar Life Insurance Policy?

  1. 1805 POINTS
    Samuel Smith
    Enrolled Agent-licensed to practice before the IRS, Samuel N Smith, EA, South Carolina
    A "split dollar" life insurance plan is usually used in business planning and especially for "estate planning". When "split dollar" was first introduced some tax advantages was claimed in that more than party is sharing in the benefits of the policy and the IRS has challenged the "tax advantages" and the future of this business planning strategy has been questionable for some time
    Answered on November 24, 2013
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  2. 63333 POINTS
    Peggy Mace
    Most of the U.S.
    A split dollar life insurance policy is simply a regular life insurance policy, but the costs and benefits are split between more than one person. The most common arrangements are for an employer and employee, or parent and child, to own and pay for the split dollar life insurance policy.
    Answered on November 25, 2013
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