Charitable Split Dollar Insurance Plan
Definition of "Charitable split dollar insurance plan"
Arrangement that provides for the reduction of estate taxes and the payment of tax-deductible life insurance premiums. The procedure is for a donor to present a charity with a gift of a sum of money that is tax deductible to the donor. The charity then transfers this gift in the form of a premium payment on an ordinary life insurance policy on the donor's life (the insured). The beneficiaries under the policy are the charity and the donor's heirs. Upon the death of the donor, the charity and the donor's heirs share in the death benefit from the policy. The donor's heirs also receive the cash value accrued on a tax-deferred basis within the policy.
Popular Insurance Terms
Section of the insurance policy that lists all of the provisions that are applicable to the insurance coverage provided under that section. This section is attached to the policy jacket ...
Professional designation earned after the successful completion of six national examinations given by the insurance institute of America (IIA). Covers such areas of expertise as premium ...
Section of an insurance company that evaluates claims for their subsequent payment. ...
Coverage for the federal government in the event of loss due to dishonest acts of federal government employees. ...
Financial incentives credited to the policy to encourage the policyowner to keep the policy in force. The incentives may be utilized by: (1) applying them to the policy cash value after a ...
New rule entitled "Accounting for Certain Investments in Debt and Equity Securities," which requires most fixed maturity investments to be listed on the INSURANCE COMPANY'S FINANCIAL ...
Same as term Final insurance: premiums paid out of funds borrowed from the cash value of a life insurance policy. ...
Demand without foundation, such as a claim submitted to an insurance company by an insured who caused a loss, or for a loss that never occurred. ...
Coverage that provides for replacement of damaged or destroyed property on a new replacement cost basis without any deduction for depreciation. This is equivalent to replacement cost ...
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