Hawaii Split-Dollar Life Insurance is a unique and popular insurance arrangement that offers high-value coverage with tax advantages. Split-dollar life insurance in Hawaii specifically refers to the method used to fund and structure the policy, allowing for shared ownership and benefits between an individual and their employer or another party. This arrangement is widely used for estate planning, employee benefits, and business succession purposes. There are different types of Hawaii Split-Dollar Life Insurance that can be utilized based on the specific needs and goals of the individuals involved: 1. Traditional Split-Dollar: In this type, an employer and employee enter into an agreement where the employer pays the premiums for a permanent life insurance policy, while the employee retains the rights to a portion of the policy's cash value and death benefit. 2. Equity Split-Dollar: This variation allows an employer to recover the premiums paid on the policy as a loan against the policy's cash value or death benefit. The employee or policyholder still retains access to the remaining cash value and benefits. 3. Reverse Split-Dollar: In this arrangement, the employee funds the policy premiums while the employer becomes the policy's beneficiary. However, the employee still retains the right to any remaining cash value and death benefit. 4. Collateral Assignment Split-Dollar: This type involves an individual assigning a portion of their life insurance policy's cash value to a lender as collateral for a loan. The employee retains ownership rights to the policy while ensuring the lender's security. Hawaii Split-Dollar Life Insurance offers tax advantages, including potential income tax deductions for premium payments, tax-deferred growth of cash value, and tax-free death benefit proceeds. Moreover, the policy can provide valuable financial protection, help in retaining top employees, and contribute to a comprehensive estate planning strategy. In summary, Hawaii Split-Dollar Life Insurance is a flexible and beneficial life insurance arrangement utilized for various purposes in the Hawaiian insurance market. With multiple types available, individuals, employers, and businesses have the freedom to choose the most suitable option tailored to their specific needs and objectives.