Split-dollar life insurance was a huge hit decades ago.
Now, no one’s heard of it.
Your business-owner clients, however, need to know about it and its benefits.
These clients may be able to use a split-dollar concept to help fund their retirement on a tax-deferred basis.
Watch the video to learn how split-dollar can make a difference to your business-owner clients and your bottom line.
Keep reading below for the full video transcript.
VIDEO TRANSCRIPT
Split-Dollar Life Insurance
Split-dollar life insurance was being sold like gangbusters 15-20 years ago, but not so much now. As a matter of fact, you've probably been in a meeting where somebody brought up the topic of split-dollar and everybody ducked because it was going over their heads.
But this is a great tool for business owners. Here's split-dollar in its essence: Here's what the company pays (ripping off a small piece of a dollar bill). Here's what the executive pays (holding up the larger portion of ripped dollar bill). 20 years later, this is what the executive gets (holding up the larger portion of ripped dollar bill again).
Although it seems complicated, it's actually just a formula for processing the case through the system. We have the experts at home offices to help us do that accurately. They have the backup and support to provide the things that you need to make sure your case stays in force and is set up properly the first time.
So, if you have a business owner and he wants to take some of the business money and put it in his own pocket when he retires on a tax preferred basis, split-dollar is the way to go.
