Empowering Executive Benefits with Smart Financial Strategies

What Is a Split Dollar Plan?

A Split Dollar Plan is a financial strategy between a credit union and a key executive that uses permanent life insurance to provide long-term benefits. It helps retain top talent while delivering retirement income and financial security.

Why Credit Unions Choose Split Dollar Plans

✅ Executive Retention & Recruitment

Provide a long-term incentive that attracts and retains top-tier leadership.

✅ Supplemental Retirement Income

Executives receive tax-advantaged income payouts during retirement from the policy’s cash value.

✅ Balance Sheet-Friendly

Plans are often self-sustaining with minimal long-term cost to the credit union.

✅ Fully Customizable

Choose loan-based or endorsement methods to fit your institution’s needs.

How It Works

1. Credit Union Funds a Life Insurance Policy
   • Usually permanent life insurance (e.g., Indexed UL or Whole Life).
   • Accumulates tax-deferred cash value over time.
2. Cash Value Growth & Income Distribution
   • Executive receives annual income distributions during retirement.
   • Distributions may be structured as loans to avoid current income taxation.
3. Repayment & Exit Strategy
   • Credit union recovers its premium contributions from death benefit or cash value.
   • The executive’s beneficiaries receive a portion of the death benefit.

Why It Works for the Credit Union

🔹Enhances executive loyalty and retention for CEOs, CFOs, and Senior Leaders

🔹Aligns long-term organizational goals

🔹Offers a deferred compensation strategy with built-in cost recovery

🔹Complies with NCUA and IRS requirements when structured properly

Let's Design a Plan That Works for You

🔹Project retirement income scenarios

🔹Analyze cash flow impacts

🔹Ensure legal and tax compliance

Already Have a Plan?

• We can review your in-force policy to identify potential deficiancies and areas of opportunity

Benefits of Working with Us

✅Tyler Smith & Francesco Mercuri are CERTIFIED FINANCIAL PLANNER™ professionals with a combined 20+ years of experience

✅Experience working for and with Credit Unions

✅Young Advisors that will likely manage plan through executives' retirement

✅Act as a broker to multiple insurance providers

This material contains only general descriptions and is not a solicitation to sell any insurance product or security, nor is it intended as any financial or tax advice. Guarantees are based on the claims paying ability of the issuing company. If you need more information or would like personal advice you should consult an insurance professional. You may also visit your state’s insurance department for more information.