In today’s competitive world, attracting and retaining key people can be critical to the success of your enterprise. One solution for small business owners to incentivize their most valuable employees is with a split dollar agreement. With this method, the business purchases a life insurance policy from Lafayette Life to cover the employee with premium payments shared (or split) between the employee and employer. When the employee passes away, you receive a portion of the death benefit with the remaining benefit going to the deceased employee’s beneficiaries.
Regardless of which split dollar arrangement is chosen from Lafayette Life, you and your Financial Representative may find it can be a flexible, cost-effective incentive program to reward the long-term commitment of your key employees while ensuring the success of your business.