NU Online News Service, Feb. 27, 9:57 a.m. – Principal Financial Group Inc., Des Moines, Iowa, has introduced Principal Split Dollar Plus, a new split-dollar life insurance program designed for key executives at small and midsize businesses.
Employers that adopt the program pay for permanent life insurance for employees. The Internal Revenue Service treats the contributions as low-interest loans to the employees. The employees get the life insurance for the “tax cost” of the loans, Principal says.