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Split-Dollar insurance is a type of life insurance ownership that can provide future income benefits along with a death benefit. It involves splitting the premium, cash surrender value, and death benefit between the company and the executive. The executive owns the policy, which offers creditor protection. The company primarily pays the premium, with the executive potentially facing taxes or loan interest. The cash surrender value is usually assigned to the company, up to the total premiums paid. Interest on the cash value can be used for retirement income.
