Employee Compensation

Life insurance can be a valuable benefit used to enhance employee compensation packages.

One option would be for the company to purchase term life insurance on behalf of key employees.

Another approach would be to implement split-dollar life insurance.  This could be set up where the employer and employee split the cost of the life insurance premiums. Upon death of the employee, the company receives the cash value of the policy and the family receives the death benefit.  In this way, a split dollar arrangement allows the employer to "lend" money to the employee so he or she can purchase more insurance for their family.