You da man!!!!
Could your agent have said "split-dollar insurance"? That is the only "split" insurance I can think of. Under that type of plan, the employer buys a whole-life policy on an employee, and pays the part of the premium that is equal to the annual increase in cash surrender value. The employee pays the rest (the pure insurance part). The employee gets the equivalent of term insurance at a lower cost, and his beneficiary collects the policy proceeds, less its cash surrender value. The employer just builds up an asset (the cash surrender value) which it recovers at the employee's death. There really isn't any tax deductible life insurance here that I can see, just a legal subsidy of an employee's life insurance.
I wasn't referring to the premiums as non-taxable, but to the pay-offs. Also the loans taken out to buy the premiums were a business tax writeoff.