An endorsement method plan is the formal program establishing employer-owned life insurance with endorsed benefits for select employees. Plan documents specify eligibility, premium responsibility, economic-benefit reporting, and what portion of death benefit or cash value is allocated to the executive. The plan coordinates with employment agreements and defines exit, transfer, or rollout provisions on separation.

Advisors draft plan summaries outlining eligibility, premium handling, endorsed benefit amounts, vesting, and termination provisions. HR keeps signed acknowledgments with employment files. On separation, plans dictate whether benefits continue, are transferred, or are surrendered, keeping expectations clear for both parties.