The Kings New York Split-Dollar Insurance Agreement with Policy Owned Jointly by Employer and Employee is a unique insurance arrangement that facilitates cost-sharing between the employer and employee. It serves as a strategic financial planning tool, offering a variety of benefits for both parties involved. This type of split-dollar insurance ensures the seamless transfer of policy benefits and eventually leads to the policy's eventual transfer to the employee. In this arrangement, the employer is the policyholder and pays the premiums, while the employee is the insured individual. The policy's ownership is jointly held by both the employer and employee, establishing a collaborative approach to insurance funding. This partnership between the employer and employee aims to provide financial security and protection to promote employee loyalty and satisfaction. The Kings New York Split-Dollar Insurance Agreement with Policy Owned Jointly by Employer and Employee comes in various forms, including: 1. Non-Equity Split-Dollar Insurance: This type of split-dollar insurance allows the employer to recover their premium contributions upon death or policy termination, ensuring that the employer gets a return on their investment. 2. Equity Split-Dollar Insurance: With equity split-dollar insurance, the employer's premium contributions are considered as loans to the employee, which will be repaid upon policy termination or death. Any policy excess may be tax-free for the employee's beneficiaries. 3. Reverse Split-Dollar Insurance: This arrangement allows the employee to have ownership rights over the policy investment, and the employer is repaid upon policy termination or death. It provides a specific focus on employee benefits rather than the employer. 4. Collateral Assignment Split-Dollar Insurance: In this type of split-dollar insurance, an employer loans the premium payments to the employee, who assigns the policy's death benefit as collateral. The employee repays the loan upon policy termination or death, and any remaining amount goes to the employee's beneficiaries. 5. Economic Benefit Split-Dollar Insurance: Here, the employer pays the policy's economic benefits or premiums, which are taxable to the employee. This approach aims to provide future value to the employee. The Kings New York Split-Dollar Insurance Agreement with Policy Owned Jointly by Employer and Employee is a versatile insurance arrangement that suits different financial situations, ultimately providing financial protection and security for both parties involved.