In a split dollar plan a key issue relates to the actual ownership of the policy. What are the two common methods of implementing a split dollar plan?

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The two common methods of implementing a split dollar plan are the endorsement method and the collateral assignment method. In the endorsement method, the employer endorses the policy to the employee, who is responsible for paying the premiums and is the policy owner. In the collateral assignment method, the employer retains ownership of the policy and the employee is the beneficiary. Both methods provide different advantages and disadvantages, so it is important to carefully consider which method to use based on the goals and needs of the employer and employee.

In a Split Dollar Plan a Key Issue Relates to the Actual