Advantages of Cash Value Life Insurance
A split dollar plan allows business owners to accumulate retirement income tax-free, making it an attractive offer for both themselves and their employees. This program is beneficial for the following reasons:
- Attracts, rewards and retains key employees
- Provides tax-deferred growth
- Income tax-free retirement income
- Income tax-free death benefits to heirs
- Relatively easy to establish (IRS approval not required)
- Ability to spend company money to buy personal life insurance
- Maintains its interest rate at the establishment, even if interest rates rise
Please use the form to review our case study over this strategy: