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Split-Dollar insurance involves shared ownership of a life insurance policy between an executive and a company. This arrangement provides future income benefits to the executive in addition to the death benefit. The premium, cash value, and death benefit are split between the company and the executive. The executive owns the policy, providing creditor protection. The company pays the premium, and the executive may be taxed on payments. Cash surrender value is assigned to the company up to the premiums paid. Interest on the cash value can provide retirement income.
