Split Dollar Plans

Share the Cost of Life Insurance with Your Top Employees

Split dollar plans allow key personnel to enjoy the benefits of life insurance protection without shouldering all of the expense.

That’s because with these plans, your business pays part of the premiums. In other words, the payments are “split” between your employees and your business. It’s up to you to decide what percentage of the premiums you want to pay.

If the employee dies, your business receives an amount equal to the premiums paid or the cash value of the death benefit. Meanwhile, the employee’s beneficiary receives the rest of the money.

Split dollar plans are flexible. They can be designed in several ways – with you or the employee listed as the policy owner – and can be tailored to meet the needs of the employee. These cost-effective plans aren’t hampered by IRS restrictions. And, you can determine which employees to ask to participate in this plan.

You already know how difficult it can be to attract – and keep – desirable personnel. Split dollar plans can be a viable means of helping you do both, while providing financial protection for your employees.

Example: You decide to enter into a split dollar plan with John, your top salesperson. Under the agreement, you and John decide to each pay 50% of the premiums due on a $1 million term life insurance policy, which means each of you will pay $1000 annually. After 15 years of the policy being in force, John passes away. Your business would receive the premiums it paid ($15,000), while John’s beneficiary would receive the remainder of the money ($985,000).

Let Emerging Insurance Brokerage Services help devise a split dollar plan that’s right for your business.

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Noori Insurance Agency, Inc.
DBA: Emerging Insurance Brokerage Services

37371 Fremont Blvd Ste B.
Fremont CA 94536

tel 510-796-4929
fax 510-796-4928