Under a split dollar agreement, classified as a welfare benefit plan, the employee must belong to a select group of management, which includes quantitative and qualitative elements. To meet the quantitative standard, plans should be limited to the top 15% of the workforce. To meet the qualitative test, a significant disparity should exist between the average compensation of the top-hat group and the average compensation of all other employees.
Indexed Universal Life Insurance products are not an investment in the “market” or in the applicable index and are subject to all policy fees and charges normally associated with most universal life insurance."
You are required to pass the certification training exam in order to sell North American Company for Life and Health Insurance Indexed Universal Life Products. No special designation with regard to indexed universal life products is earned by successfully passing the exam and you may not state or imply that you have any such special designation in any communications to consumers.
While the primary use of life insurance is death benefit protection, your clients may also have other needs that can be met through life insurance. The sales concepts and accompanying marketing materials below may help you broaden your sales potential. As independent contractors, it is up to you to choose which of these concepts may work for your particular sales strategy and clients, and which do not. Please note that North American Company does not require you to use any of these sales concepts; they are resources that can be used at your discretion for your own individualized sales presentations.
To ensure the death benefit proceeds of any employer-owned policy retains its tax-favored treatment, it is essential to comply with the notice and consent requirements of IRC Section 101(j). Under a loan split dollar agreement, the employee enters into an agreement with the employer. North American Company for Life and Health Insurance® is not a party to this agreement and North American's only obligation is to administer the policy it issues (consistent with the policy’s terms and conditions).
While the primary use of life insurance is death benefit protection, your clients may also have other needs that can be met through life insurance. The sales concepts and accompanying marketing materials below may help you broaden your sales potential. As independent contractors, it is up to you to choose which of these concepts may work for your particular sales strategy and clients, and which do not. Please note that North American does not require you to use any of these sales concepts; they are resources that can be used at your discretion for your own individualized sales presentations.
The parties to the loan split-dollar arrangement should seek their own independent legal and tax advice as to whether and how to enter into a loan split-dollar arrangement based on the employer’s and employee’s unique circumstances.
