Funding a future Retirement, Death or Severance of a Partner - ABS Insurance Group

Funding a future Retirement, Death or Severance of a Partner

Split Dollar Life Insurance plans are used by LLC’s, Sole Proprietorships, Partnerships and Closely Held C Corps to achieve 5 goals:

 

  1. Life and Long-Term Disability Insurance Protection Prior to Retirement for KeyPerson(s)
  2. Allows the business to start funding the buyout of an Equity Partner of the business upon their retirement.
  3. Fund an additional Tax-Advantaged Retirement Savings Plan for KeyPerson(s) outside of their 401(k)
  4. Business Insuring itself against the loss of a Valuable Executive (KeyMan or Buy/Sell)
  5. Helps Business’s retain Key Employees

 

There are 4 types of Business Split Dollar Plans, however, we’ll focus exclusively on:

 

Split Dollar Endorsement “Economic Benefit Regime”

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