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