Termination Method

As the Loan Based Split Dollar Plan is rolled out to the Employee, the Employee will need to pay off the Loan Balance due to the Employer. Choose the appropriate method for paying off the Loan Balance.

• Policy Withdrawal – Take a one-time distribution amount from the Policy Values in the form of a withdrawal to repay the Loan Balance due to the Employer.
• Policy Loans – Take a one-time distribution amount from the Policy Values in the form of a loan to repay the Loan Balance due to the Employer.
• Policy Switch at Basis – Take a one-time distribution amount from the Policy Values in the form of a withdrawal up to basis (total premiums paid) after which a loan will be taken to meet the request to repay the Loan Balance due to the Employer.
• Employee Cash – Assumes an out-of-pocket expense by the Employee to repay the Loan Balance due to the Employer.