Michigan Split-Dollar Life Insurance is a unique life insurance policy arrangement that allows individuals in the state of Michigan to share the costs and benefits of a life insurance policy with another party, typically an employer or business partner. This innovative insurance strategy enables both parties to secure the financial protection offered by a life insurance policy while sharing the expenses associated with it. Split-Dollar Life Insurance policies in Michigan come in two different types: collateral assignment split-dollar and endorsement split-dollar arrangements. 1. Collateral Assignment Split-Dollar: This type of split-dollar arrangement involves an employer or business partner providing a loan to the insured individual to pay for the life insurance policy premiums. In return, the employer or business partner becomes the primary beneficiary of the policy up to the amount of the outstanding loan balance. In the event of the insured individual's death, the loan is repaid from the policy's death benefit, and any remaining amount is distributed to the insured's designated beneficiaries. 2. Endorsement Split-Dollar: With an endorsement split-dollar arrangement, the employer or business partner pays the premiums for the life insurance policy directly. However, instead of being repaid through the policy's death benefit, the employer or business partner receives a portion of the policy's cash value or death benefit that is equal to the premiums paid. The remaining portion of the benefit is typically designated for the insured individual's beneficiaries. Michigan Split-Dollar Life Insurance offers significant advantages for both the insured and the sponsoring party. For the insured individual, this arrangement allows them to obtain valuable life insurance coverage at a more affordable cost, as the expenses are divided between the parties involved. It provides financial security to their beneficiaries in the event of their death, ensuring the future well-being of their loved ones. For the sponsoring party, Michigan Split-Dollar Life Insurance offers a means to provide employee benefits or establish business continuation plans. By sharing in the costs of the policy, the sponsoring party can retain talented employees, create attractive compensation packages, or secure a business interest in the event of the insured individual's passing. In summary, Michigan Split-Dollar Life Insurance is a flexible and mutually beneficial life insurance arrangement that allows individuals and sponsoring parties to share the costs and benefits of a policy. The collateral assignment and endorsement split-dollar types provide customizable options to meet specific needs, offering financial protection and peace of mind to the insured and securing business interests in the sponsoring party.