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Which plan can be used as an incentive by an employer to help an employee buy life insurance?

A) Split-dollar plan.
B) Deferred compensation plan.
C) Key person insurance.
D) Sole proprietor buy-sell plan.

User Zahid M
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1 Answer

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Final answer:

The Split-dollar plan is a type of arrangement where the employer and employee share the costs and benefits of a life insurance policy.

Step-by-step explanation:

The plan that can be used as an incentive by an employer to help an employee buy life insurance is the Split-dollar plan (A).

A split-dollar plan is an arrangement where the employer and employee share the costs and benefits of a life insurance policy. Under this plan, the employer pays for a portion of the premiums, and the employee pays for the remaining portion.

This arrangement serves as an incentive for the employee to obtain life insurance coverage, as they receive assistance from the employer in paying for the premiums.

User Gion Rubitschung
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