During a breakout session at NAIFA's P+P Conference currently taking place in Orlando,  attendees got a rare opportunity to hear from two industry experts--Andrew Rinn with Ameritas and Kevin Cox with Lincoln Financial Distributors.  Both men explained the concept of split dollar and shared some of its most recent applications.

As explained by the two  financial professionals, , split dollars are transfer tools that use life insurance and are relevant today than they have been in the past. They have been around for sometime ; then in 2002, the IRS regulated them. With this action, many thought that they were on their way out, but they are not

A split dollar is as an agreement between an owner ad an non-owner of a life insurance contract. The company pays for it and the employee gets part of the insurance death benefit and maybe a part of the cash value, as well.

The presentation focused on 2 types of split dollar: economic  benefit split dollar and loan regime split dollar.

The economic benefit split dollar life insurance takes care of several  things, including:

Estate liquidity

Business succession  planning death benefit

Supplemental retirement

Income replacement of spouse and children

The loan  regime split dollar technique 's objectivess are also many, including:

Reward and retain key employees

Provide some of supplemental income for

PRotection of surviving spouse and children from business debts and personal guarantees of buxiness debt

The loan regime split dollar's objectives are also many, including:

Reward and retain key employees

Provide some supplemental income for key employees.

Loan regime split dollar can also be used for tx-exempt organizations. IT provides solutions and techniques that meet the needs of people with money.