Are You Missing Out on This Line of Business?
Do you have clients looking for an incentive to help retain and reward their employees? This may be a new life insurance sales opportunity you haven’t yet explored.
Split dollar1 arrangements
In these arrangements, business owners and key staff members can share the cost and benefits of a life insurance policy.
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See how Builder Plus IUL® 3 (indexed universal life insurance) performs in these arrangements!2
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1. Under an economic split dollar arrangement, the value of the life insurance afforded the employee is taxable to the employee. The employer should provide the employee with tax reporting based on requirements specified in the tax code. The parties to the economic split-dollar arrangement should seek their own independent legal and tax advice as to whether and how to enter into an economic split dollar arrangement based on the employer’s and employee’s unique circumstances.
Under an economic split-dollar arrangement, the employee enters into an agreement with the employer. North American Company for Life and Health Insurance is not party to this agreement and North American’s only obligation is to administer the policy it issues consistent with the policy’s terms and conditions.
2.Builder Plus IUL 3 was chosen in this example for its potential long-term cash value accumulation. North American offers several indexed universal life insurance products.