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Split-Dollar insurance involves co-ownership of a life insurance policy, providing future income benefits and a death benefit. It includes three components: premium paid, cash surrender value, and death benefit. The arrangement splits these components between the company and the executive, with the company primarily covering the premium. The executive owns the policy for creditor protection, with the cash surrender value assigned to the company up to the amount of premiums paid. Interest on the cash value can be used for retirement income.
