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Split-Dollar insurance involves shared ownership of a life insurance policy between a company and an executive. This arrangement provides future income benefits and a death benefit to the executive. The three components of permanent life insurance - premium paid, cash surrender value, and death benefit - are split between the company and the executive. The policy offers creditor protection and the premium is primarily paid by the company. Cash surrender value is assigned to the company up to the amount of premiums paid. Interest on the cash value can be used for retirement income.
