Financing Split Dollar plans (in a volatile market)
2SHARES
Does anyone else feel like you have been riding a roller coaster trying to balance a raw egg? Over the last several months, the volatility in the market has caused some executives concern for their Split Dollar benefits. It is important to understand the type of insurance used in your plan and how each product works.
For the majority of Split Dollar Plans, life insurance is the natural choice for funding. Although the decision to utilize life insurance is fairly straight-forward, the type of product best suited to accomplish the objectives can be a different story. There are two types of insurance which are most commonly used; Index Universal Life and Whole Life. Each type has key features which help mitigate risk while maximizing flexibility and efficiency.