Benefits of Using Split Dollar for the Employer

  • Tax-free death benefit may entice the employee to stay with the company.
  • Company keeps the assets used to fund the death benefit on its books.
  • Cash values will strengthen the company’s balance sheet.
  • During working years the company may receive additional keyperson death benefits in addition to premium repayments.
  • Company’s interest is protected by a collateral assignment.
  • The company recovers its outlay when the split dollar loan is repaid – either during life or upon the death of the employee.