Split-dollar insurance is not limited to merely funding the personal insurance needs of an employee. For example, the employee could choose to enter into a split-dollar agreement insuring someone other than himself, such as a spouse or a child. Alternatively, the employee could choose to enter into a split-dollar agreement insuring another stockholder whose stock he is obligated to purchase.
DURING LIFETIME. Assume that we have a corporation owned by two individuals, Employee A and Employee B. They enter into a cross-purchase agreement providing for the purchase and sale of their respective interests. This business-funded strategy should not be confused with the Cross-Endorsement Buy-Sell Agreement.