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There are many benefits to using a split dollar arrangement for an employee-owned life insurance policy depending on the need for life insurance. Sometimes employers are seeking ways to retain and reward their top employees and other times they are looking to merely reward them. In split dollar planning, a loan 

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loan is a demand loan or a term loan. For example, the transfer is generally characterized as compensation if the lender is the borrower's employer. □. If a split-dollar loan is repayable on demand, the short-term AFR applies in calculating the interest. □. Since this rate changes monthly, the calculation normally would have