Life · Chapter 10 · Executive Benefit Plans
Split-Dollar Plan
Definition
An employer-employee arrangement funded with cash value life insurance in which the death benefit and cash value (and often the premium) are SPLIT between employer and employee. Combines the employee's need for insurance with the employer's ability to pay; can be offered selectively.
In plain English
Boss fronts most of the premium; when the insured dies (or the deal unwinds), the boss gets their money back and the employee's side keeps the rest.
Easy to confuse with
These are what this term gets tested against — if you can't tell them apart cold, drill the contrast.
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