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
Method of terminating a split dollar life insurance policy by the company transferring its interest in the policy (after the company has effected the largest policy loan permitted equal to ...
Provision found in juvenile insurance that waives the premiums due on the insured child's policy provided that the payor of the premiums becomes totally disabled or dies before the child ...
Coverage for liability exposure resulting from the activities of a business; includes: direct liability acts of the business resulting in damage or destruction of another party's property ...
Tenant's modifications of leased space to fit his particular needs. Up to 10% of contents coverage inside the structure may be applied to insure against damage or destruction of ...
Time frame during which an annuitant makes premium payments to an insurance company. The obligations of the company to the annuitant during this period depend on whether a pure annuity or ...
Method used to reduce workers compensation insurance costs by using a single database system to electronically link claims administration, medical claim costs, risk management, and vendor ...
One of four types of risks affecting the life insurance company as identified by the society of actuaries. This risk is associated with losses that the life insurance company may incur as ...
Latin phrase meaning "to stand by the decisions." This legal doctrine under common law requires courts to rely on precedents, or previous decisions, when deciding disputes unless there is a ...
Coverage on an all risks basis, subject to exclusions of war, wear and tear, loss resulting from delay, loss of market, infidelity of the insured's employee, loss due to rain, sleet, snow, ...
Have a question or comment?
We're here to help.