Endorsement split-dollar is the practical implementation of the endorsement method-employer owns the policy and endorses benefits to the employee. Taxation follows the economic-benefit regime; the employee includes the value of current insurance protection in income. The design is popular for executive-benefit carve-outs because it delivers targeted death-benefit leverage with retained employer control and simplified administration.

Implementations pair employer-owned policies with board-approved plan documents. Advisors coordinate economic-benefit calculations, beneficiary designations, and roll-out or transfer provisions. Annual reviews confirm amounts remain appropriate and that tax reporting and documentation support withstand compensation committee and IRS scrutiny.