Charitable Reverse Split Dollar (crsd)
Definition of "Charitable reverse split dollar (crsd)"
Financial technique for providing term death coverage for an entity. With this procedure: (1) an individual purchases an ordinary life insurance policy and completes an agreement with the entity for a reverse split dollar life insurance arrangement; (2) an individual endorses a policy's death benefit to the entity; (3) an entity assigns its interest in the policy to the charity; (4) an entity makes unrestricted gifts of cash to the charity in the form of premium payments according to the split dollar agreement; (5) an entity receives a charitable income tax deduction for gifts of cash (premium payments); (6) the policy owner (insured) is then entitled to make a tax-free withdrawal of all or a portion of the cash value, or take out a policy loan.
Popular Insurance Terms
Provision in corporate life insurance policies that allows coverage to be transferred to a new individual with proof of insurability, for a premium appropriate to the age of the new ...
Coverage on an all risks basis through an endorsement to a business property insurance policy in which each sign is specifically scheduled, subject to the exclusions of wear and tear, and ...
Personal view regarding how losses occur and the validity of loss prevention and reduction; also, whether an individual is a risk taker or a risk avoider. For example, if a driver takes the ...
Coverage under which the face value, premiums, and plan of insurance can be changed at the discretion of the policy owner in the following manner, without additional policies being issued: ...
Important means of preventing accidents and injuries. Insurers take corporate safety programs into account when rating workers compensation and other business insurance policies. ...
Insurance company's net gain from operations divided by its adjusted surplus. This is the accounting rate of return on stockholder's equity since the ratio shows the rate of return the ...
Property or liability coverage that provides benefits (usually after a deductible has been paid by an insured) up to the limits of a policy, regardless of other insurance polices in effect. ...
The open perils policy is the counterpart to the named perils policy. In it, any peril NOT mentioned is covered by the policy. Here's an example: let's say you got an open perils policy ...
Scheme to recapture excess pension assets by splitting a qualified plan in two, and terminating one of them. In the mid-1980s, many pension plans became "overfunded" because their ...
Have a question or comment?
We're here to help.