All the following statements regarding split-dollar life insurance plans are correct EXCEPT:

In a split-dollar life insurance arrangement, the fundamental characteristic is that both the employer and employee share the costs and benefits associated with the policy. In this structure, it is typically the case that the employer provides assistance with premium payments, while the employee may also contribute or have a vested interest in the policy.

The statement that the employer pays the entire premium and the employee receives the policy benefits does not accurately reflect how split-dollar arrangements function. If the employer were to pay the entire premium alone, it would negate the split-dollar concept, which is fundamentally about sharing the financial responsibility and benefits.

In addition to this, the other correct statements clarify the nature of split-dollar plans: both parties often share in the premium costs, death benefits are co-shared typically between the employer and the employee, and the employee retains the right to choose the beneficiary, thereby providing them with a level of control and personal stake in the policy. Understanding these principles highlights the collaborative intent behind split-dollar arrangements, which is to provide both parties with protections and benefits that are mutually advantageous.