Split Life Insurance
Definition - What does Split Life Insurance mean?
Split life insurance is a life insurance policy that is purchased by two or more parties. The parties can share a number of different aspects of the policy, such as responsibility for premium payments, the death benefit payouts, and dividends. Split life insurance is commonly offered by employers as an employee benefit.
Insuranceopedia explains Split Life Insurance
Many people choose to purchase split life insurance because it allows them to access some life insurance benefits without having to pay for the entire policy themselves. For example, two people may agree get a split life insurance policy that has a death benefit of $100,000 so they can split the benefit. Many employers are favorable towards split life insurance because it allows them to offer a benefit to their employees without having to shoulder the full cost.