The endorsement method is a split-dollar arrangement where the employer owns a policy and endorses a portion of benefits to the employee or a trust. The employer typically pays premiums; the employee recognizes taxable economic benefit measured under IRS Table 2001 or insurer rates. The method allows targeted executive benefits while the employer retains policy ownership and control.

Comp committees choose endorsement split-dollar to provide targeted death benefits with employer ownership. Payroll reports economic benefit annually. Advisors benchmark Table 2001 vs. carrier rates to minimize tax cost, and document endorsements specifying the portion allocated to the executive or ILIT.