You can pay the full premium or determine the split any way you wish. Your business gets its money back and the employee gets the benefit You and your employee both win. The premiums you've paid will be returned. Instead of salary increases that are eaten up by income taxes, this plan can help develop happy, loyal, committed people. Split payment of premiums mean the costs are much less than buying protection on their own.
Values grow on a tax-deferred basis, and can be used for a retirement fund.
Why you will like the split-dollar plan You can select important people from your business, including yourself, to be in the plan. You can manage and compensate your valuable employees without being boxed in by government regulations. You enjoy flexibility. Your business can own the insurance with a special beneficiary designation, or your employee can own it with a collateral assignment to the business. An AAL representative can help you Contact your local AAL representative to find out how a 162 executive bonus or split dollar insurance plan could help your business.