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Flexible Benefits. Shared Success.
Split Dollar Arrangements provide a collaborative way for employers and employees to share the costs and benefits of life insurance policies. This flexible strategy helps businesses attract and retain key talent while managing expenses effectively.
Split Dollar Arrangements are innovative agreements between employers and key employees that allow both parties to share the premiums, benefits, and ownership rights of a life insurance policy. This partnership approach helps businesses provide valuable benefits to essential personnel without bearing the full financial burden.
Under a split dollar plan, the employer typically pays a portion or all of the premiums, while the employee gains access to policy benefits such as cash value accumulation and death benefits. The arrangement is structured to clearly define each party’s rights and responsibilities, ensuring transparency and fairness.
At Bora Financial Services, we work closely with you to design split dollar arrangements that meet your specific goals, balancing financial efficiency with competitive employee benefits. This strategy helps protect your investment in key personnel while fostering loyalty and stability.
It’s an agreement between an employer and employee to share the costs and benefits of a life insurance policy.
The structure varies, but often the employer pays the premium and is reimbursed from the policy’s death benefit or cash value.
Tax treatment can be complex and depends on how the arrangement is structured. Legal and tax guidance is recommended.
If your life insurance is permanent insurance that has accumulated cash values, you may be able to withdraw, or take a loan against, those cash values to provide cash towards your purchase of their interest.
CEO and Founder of Bora Financial Services
Insurance Policies Specialist
These days, it’s especially important to have a trusted professional guiding your choices. With 10 years’ experience, I’ll personally evaluate your situation and needs. Together, we’ll help protect your family’s wealth, lifestyle, and future.
Peace of Mind for Every Chapter of Life.
Your living benefits – life insurance that you access the death benefit before death, gives you strength through life’s toughest turns.
Because life doesn’t always go as planned — but your protection can.
