A Pennsylvania Split-Dollar Insurance Agreement with policy owned jointly by employer and employee is a mutually beneficial contract that outlines an arrangement between an employer and employee for the purchase and distribution of life insurance policy benefits. Under this agreement, the employer and the employee share ownership of the life insurance policy while the employer usually pays the premium. This type of arrangement is often used as an employee benefit to attract and retain top talent. In Pennsylvania, there are generally two types of Split-Dollar Insurance Agreements with policy owned jointly by employer and employee: 1. Endorsement Split-Dollar Agreement: In this arrangement, the employer endorses the life insurance policy for the benefit of the employee. The employer typically pays the premiums, but the policy's cash surrender value (CSV) is attributed to the employee. If the employee dies, the employer will receive back the premiums paid from the policy's death benefit, and the remaining amount will go to the employee's designated beneficiaries. 2. Collateral Assignment Split-Dollar Agreement: This type of split-dollar agreement involves the employee assigning a portion of the policy's death benefit to the employer as collateral for any contributions made towards the premium payments. If the employee dies, the employer will be reimbursed the premiums paid, and the remaining death benefit will be designated to the employee's beneficiaries. Keywords: Pennsylvania, Split-Dollar Insurance Agreement, policy owned jointly, employer and employee, employee benefit, life insurance policy, premium, endorsement, cash surrender value, death benefit, beneficiaries, collateral assignment.