King Washington Split-Dollar Life Insurance

• Category: Corporations - Public - Disclosure and Notices
• State: Multi-State
• County: King
• Control #: US-CC-24-263D
• Format: Word; Rich Text

Description

This sample form, a detailed Split-dollar life insurance document, is a model for use in corporate matters. The language is easily adapted to fit your specific circumstances. Available in several standard formats. King Washington Split-Dollar Life Insurance is a type of life insurance policy that is designed to provide financial security and protection for both the insured individual and a business or corporation. It is commonly utilized by businesses to attract and retain key executives or employees. Through a split-dollar arrangement, both the business and the individual share the premium payments, as well as the benefits of the policy. This mutual arrangement allows for the accumulation of cash value within the policy, which can be accessed by the insured individual during their lifetime. There are two main types of Split-Dollar Life Insurance offered by King Washington. The first is the endorsement method, also known as the endorsement split-dollar plan. In this type of policy, the company endorses the policy and pays the premiums, while the individual is named as the policy owner and beneficiary. The cash value accumulation is typically non-taxable for the individual, which can be a significant advantage. The second type is known as the collateral assignment split-dollar plan. In this arrangement, the individual owns the policy and pays the premiums, while the company is named as the primary beneficiary. The company provides a loan equal to the premium payments, which is secured by the policy's cash value. This type of split-dollar plan is often used as a retention tool for key executives. Both types of King Washington Split-Dollar Life Insurance can be customized to suit the specific needs and goals of the insured individual and the company. The policies offer flexible options for premium payments, cash value accumulation, and beneficiary designations. It is important to consult with a knowledgeable insurance professional to determine which type of split-dollar plan is most suitable for your unique circumstances. In summary, King Washington Split-Dollar Life Insurance is a comprehensive life insurance policy that provides financial security for both individuals and businesses. It offers flexible options, such as the endorsement split-dollar plan and collateral assignment split-dollar plan, to accommodate various needs. By sharing premium payments and benefits, this type of insurance can be a valuable tool for attracting and retaining key executives or employees.

King Washington Split-Dollar Life Insurance is a type of life insurance policy that is designed to provide financial security and protection for both the insured individual and a business or corporation. It is commonly utilized by businesses to attract and retain key executives or employees. Through a split-dollar arrangement, both the business and the individual share the premium payments, as well as the benefits of the policy. This mutual arrangement allows for the accumulation of cash value within the policy, which can be accessed by the insured individual during their lifetime. There are two main types of Split-Dollar Life Insurance offered by King Washington. The first is the endorsement method, also known as the endorsement split-dollar plan. In this type of policy, the company endorses the policy and pays the premiums, while the individual is named as the policy owner and beneficiary. The cash value accumulation is typically non-taxable for the individual, which can be a significant advantage. The second type is known as the collateral assignment split-dollar plan. In this arrangement, the individual owns the policy and pays the premiums, while the company is named as the primary beneficiary. The company provides a loan equal to the premium payments, which is secured by the policy's cash value. This type of split-dollar plan is often used as a retention tool for key executives. Both types of King Washington Split-Dollar Life Insurance can be customized to suit the specific needs and goals of the insured individual and the company. The policies offer flexible options for premium payments, cash value accumulation, and beneficiary designations. It is important to consult with a knowledgeable insurance professional to determine which type of split-dollar plan is most suitable for your unique circumstances. In summary, King Washington Split-Dollar Life Insurance is a comprehensive life insurance policy that provides financial security for both individuals and businesses. It offers flexible options, such as the endorsement split-dollar plan and collateral assignment split-dollar plan, to accommodate various needs. By sharing premium payments and benefits, this type of insurance can be a valuable tool for attracting and retaining key executives or employees.