Survivorship Split Dollar Insurance
Definition of "Survivorship split dollar insurance"
Modification of split dollar life insurance policy in that the death benefit becomes payable upon the second death. This type of policy is ideal in those circumstances when estate taxes must be paid, which is usually the case upon the death of the second spouse. Since this is a second-to-die policy, the premiums are substantially lower than those for a single life insurance policy. The procedure is for two individuals (usually spouses) to form a LIFE INSURANCE TRUST and then to enter into a SPLIT DOLLAR LIFE INSURANCE agreement with the trust. The individual (s) pay (s) that portion of the premium equal to the CASH VALUE of the policy and the trust pays the term cost of the premium. The individual is reimbursed for the premiums paid when the death benefit is paid or when the policy is surrendered for its CASH SURRENDER VALUE. The remainder of the death proceeds is paid to the LIFE INSURANCE TRUST.
Popular Insurance Terms
Legislation passed in California that establishes procedures applicable to any worker who incurs a job-related injury. This act has far-reaching implications for workers compensation ...
Insurance policy sold by nonadmitted insurer. ...
Method of calculating the life insurance policy's cash surrender value (CSV) not contingent upon the calculation of the policy's reserve such that the CSV will approximate the asset share ...
Formal process of setting aside funds on a mathematical basis to provide deferred income benefits. ...
Exchange of a new policy for one already in force. ...
Condition in which life insurance sales increase at a rate greater than the general rate of growth of the economy. As a society moves from an agriculture-based economy to an industry-based ...
Table charting relative costs of a group of cash value life insurance policies derived by using the net cost method of comparing costs (traditional net cost method of comparing costs; net ...
Loss occurring by accident or chance, not by anyone's intention. Insurance policies provide coverage against losses that occur only on a chance basis, where the insured cannot control the ...
Claim by the pension benefit guaranty corporation (PBGC) against an employer for reimbursement of the PBGC's loss (for a terminated plan) up to 30% of the net worth of the employer. If this ...
Have a question or comment?
We're here to help.