1. Companies purchase life insurance for various reasons that may include protecting against the loss of "key " employees, funding deferred compensation and postretirement benefit obligations, and providing an investment return. One form of this insurance is split-dollar life insurance. The structure of split-dollar life insurance arrangements can be complex and varied. 2. The two most common types of arrangements are endorsement split-dollar life insurance arrangements and collateral assignment split-dollar life insurance arrangements. Generally, the difference between these arrangements is the ownership and control of the life insurance policy. For an endorsement split-dollar life insurance arrangement, the company owns and controls the insurance policy, whereas in a collateral assignment split-dollar life insurance arrangement, the employee owns and controls the Copyright © 2007, Financial Accounting Standards Board Not for redistribution Page 1insurance policy. Diversity in practice exists primarily in accounting for the deferred compensation and postretirement aspects of typical endorsement split-dollar lif
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