iPipeline CIS / Advanced Sales
Employee-owned Split-Dollar
Split-Dollar in its most basic sense is not an insurance sale, but a method of funding a needs-driven sale. Split-Dollar can be the solution for:
- Estate liquidity
- Family survivor income
- Funding for buy-sell arrangements
- Employee fringe benefits
- Temporary insurance needs
- Pre-retirement death benefits and post-retirement income
In the Employee-owned arrangement of Split-Dollar, all premiums not actually paid by the employee are considered loans from the employer and subject to Section 7872 below-market interest rate rules.
Producers can show the CPA-advisor the affect of varying the Sec. 7872 imputed interest rates. A "Pay Tax" checkbox can be used to show the affect of the employer paying an additional amount to the employee, approximately equal to the tax liability on the imputed interest.
The Employee-owned Split-Dollar module gives you complete flexible with regards to the employee's portion of the premium and the employer's bonus options. Termination and repayment options cover the most likely scenarios.
For further information please contact our sales team…
call 800-758-0824 and select option 2
or email sales@ipipeline.com.
