Split-dollar life insurance is an agreement between two parties to share the costs and benefits of a permanent life insurance policy. Often, the agreements are between an employee and an employer, with the split-dollar plan showing up in an executive compensation package. A change in their tax treatment in 2003 made these packages less common¹.

Split-dollar life insurance is a strategy that allows the sharing of the cost of a premium for a permanent life insurance policy. They are often a key part of an executive compensation package and can be used to provide benefits to employees while also providing tax benefits to employers⁴.

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(1) Split-Dollar Life Insurance Explained - NerdWallet. https://www.nerdwallet.com/article/insurance/split-dollar-life-insurance.

(2) How Split-Dollar Life Insurance Works - Investopedia. https://www.investopedia.com/articles/professionals/010616/split-dollar-life-insurance-how-it-works.asp.

(3) What is Split-Dollar Life Insurance? - Fraser Stryker PC LLO. https://www.fraserstryker.com/what-is-split-dollar-life-insurance/.

(4) Understanding The Split-Dollar Life Insurance Benefit - Forbes. https://www.forbes.com/sites/forbesfinancecouncil/2022/04/21/understanding-the-split-dollar-life-insurance-benefit/.