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Split-Dollar insurance involves the ownership of a life insurance policy shared between a company and an executive. The policy offers future income benefits and a death benefit, with the premium, cash value, and death benefit split between the company and the executive. The executive owns the policy, providing creditor protection. The premium is primarily paid by the company, with the executive potentially taxed or charged interest on a loan. The cash surrender value is generally assigned to the company up to the total premiums paid, and interest on the cash value can be used for retirement income.
