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Split-Dollar insurance involves sharing ownership of a life insurance policy between a company and an executive. This arrangement offers future income benefits along with the life insurance death benefit. The premium, cash value, and death benefit of the policy are split between the company and the executive. The executive owns the policy, providing creditor protection. The company primarily pays the premium, and the cash surrender value is assigned to the company up to the total premiums paid. Interest on the cash value can be used for retirement income.
