Coverage on Shortfall

• Employee Pays in Cash – If there are not enough funds from the policy to repay the Loan Balance - through a distribution at the time the Loan Based Split Dollar Plan is rolled out to the Employee - this option will assume that the difference (shortfall) is paid with an out-of-pocket expense by the Employee.
• Bonus To Employee – If there are not enough funds from the policy to repay the Loan Balance - through a distribution at the time the Loan Based Split Dollar Plan is rolled out to the Employee - this option will assume that the difference (shortfall) is paid by the Employer as a Bonus to the Employee.