Survivorship Split Dollar Insurance

Definition of "Survivorship split dollar insurance"

Steven Asadoorian, Affiliate Broker real estate agent

Written by

Steven Asadoorian, Affiliate Brokerelite badge icon

Keller Williams Realty

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.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Insurance Terms

Donation of amount "A," made by donor X to a charity. The charity agrees to pay donor X an amount ("B") for the rest of donor X's life. Since the donation is used to fund an annuity, only a ...

Technique used by insurance companies in the purchasing of debt obligations of corporations as a means to: (1) avoid the uncertainties of the market; (2) replace market negotiations with ...

Insurance policy that pays a face amount/ lump sum if the insured is diagnosed with a specified critical illness. This sum is paid directly to the insured regardless of any other sources of ...

Gain when the underlying asset that moves in one direction is significantly different from the loss when the underlying asset moves in the opposite direction; for example, when gains and ...

Methods by which a home office underwriter chooses applicants that an insurer will accept. The underwriter's job is to spread the costs equitably among members of the group to be insured. ...

Reinsurance clause that stipulates that the reinsurer will be subject to the same fate as the ceding company. ...

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 ...

Same as term Participating Insurance: policy that pays a dividend to its owner. ...

Basic requirements of an employee benefit insurance plan such as minimum age and years of service with an employer. ...

Popular Insurance Questions