Reverse Split Dollar Life Insurance
Definition of "Reverse split dollar life insurance"
Policy that is the opposite of the traditional split dollar life insurance policy in that: the employee is the policyowner and as such can exercise all ownership rights inherit to that policy; the employee owns the cash value of the policy; the employees's beneficiary has the right to that portion of the death benefit equal to the cash value; the employer retains the right to that portion of the death benefit equal to the pure protection element (death benefit minus the cash value); the employer pays that portion of the premium charged for its economic benefit gained according to the PS 58 rate table; and the employee pays that portion of the premium equal to the total premium minus that part of the premium paid by the employer in the above.
Popular Insurance Terms
Payment of that portion of the annual premium by the employee necessary to cover the PS-58 cost for that given year. Any unpaid premium balance for that particular year is paid by the ...
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Entitlement of a pension plan participant (employee) to receive full benefits at normal retirement age, or a reduced benefit upon early retirement, whether or not the participant still ...
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