Colorado Split-Dollar Life Insurance is a specific life insurance arrangement that allows for the sharing of policy costs and benefits between an employer and an employee. It is a unique form of life insurance that aims to provide financial protection for both parties involved. In this arrangement, the employer and the employee enter into a contractual agreement to share the premium costs and death benefits of a life insurance policy. Unlike traditional life insurance policies, Colorado Split-Dollar Life Insurance allows for the policy to have multiple owners, making it a versatile option for various scenarios. There are several types of Colorado Split-Dollar Life Insurance available, including: 1. Equity Split-Dollar: This type of split-dollar arrangement focuses on building equity in the life insurance policy. The employer provides a loan to the employee to pay for the policy's premium, and when the policy pays out, the loan is repaid with interest, and any remaining death benefit goes to the employee's beneficiaries. 2. Collateral Assignment Split-Dollar: In this type of split-dollar arrangement, the employer is named the primary beneficiary of the policy, ensuring that the employer recoups the premium costs paid. The employee designates secondary beneficiaries who will receive the remaining death benefit after the employer is repaid. 3. Non-Equity Split-Dollar: This type of split-dollar arrangement is focused on providing death benefit protection for the employee's beneficiaries. The employer pays the premiums and is repaid upon the employee's death, with any remaining death benefit going to the employee's chosen beneficiaries. 4. Reverse Split-Dollar: In this arrangement, the employee pays the premiums, and the employer reimburses the employee upon death. The employer is designated as the primary beneficiary, ensuring that the funds are used to cover the employer's costs before any remaining death benefit is distributed to the employee's beneficiaries. Colorado Split-Dollar Life Insurance offers a flexible approach to life insurance planning, as it allows for shared costs and customizing the distribution of death benefit proceeds. It can be a valuable tool for employers looking to attract and retain top talent, while also providing essential financial protection for employees and their loved ones.