Sample Serp Agreement
The cash values of the policy are tax-delimited and can be used at any time by the company at its own discretion. To make a swap, the company would structure a plan in which, each year before retirement, a member agrees to lose all or part of the future benefits. The company can spend its subsequent savings on annual insurance premiums, creating a cost-neutral transaction. A split-dollar agreement between the two parties shares ownership of the current value of the police and the proceeds of death. .