What it is:
- Life insurance in which the premium is split between employee and employer
- Death proceeds and cash value are also split
How it works:
Advantages:
- Provides substantial life insurance to employee
- Offers employers premium cost recovery or more depending on agreement
- Shares life insurance cost between the employer and its employees
- Provides tax-free life insurance proceeds
- Established and administered easily – no formal IRS approval is necessary
- Offers low-cost permanent life insurance protection to employee and may also provide tax free retirement cash flow by loans and withdrawals