Participant-funded split dollar shifts the funding from the organization to the executive, who gives up compensation the organization then lends into a policy. This article covers what a board should test before adopting one, including the benchmarks a proposal should be measured against and the threshold questions that come before any modeling.
Life insurance is a common tool for funding SERPs, but success depends on more than the product. Many issues stem from untested assumptions, unclear costs, and lack of scrutiny. This article highlights the key questions decision makers should ask to evaluate performance, risk, and long term viability, helping organizations make more informed financial commitments.
Whole life insurance is often treated as a uniform product—but in executive benefit funding, outcomes are shaped by design. Two policies with the same premium and carrier can produce materially different results based on how premium is allocated, how funding is structured, and how flexibility is built in. These structural choices directly impact early cash value, risk, and long-term performance—making policy design, not just product selection, the critical variable.
Arctis Advisory (“AA”) provides fee-only consulting services and does not receive compensation from product manufacturers. Arctis Insurance Solutions (“AIS”) is a separate insurance brokerage that may receive carrier-paid commissions if engaged for policy placement. Clients are not required to use AIS. Arctis does not provide plan administration, quarterly reporting, recordkeeping, or legal/tax advice. All compensation arrangements are disclosed in writing prior to engagement or application.
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