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
Provision in an all risks inland marine policy that denies coverage for exposure to dampness and extremes of temperature. Some property, like living plants, might be particularly vulnerable ...
Duration of a policy. Property and casualty coverages are usually written for one year, although a personal automobile policy can be for six months. Life insurance can be written on a term ...
Payments made to the insured by the insurance company before the settlement date. For example, a claim is scheduled to be settled on June 1, 2000, but the insurance company pays the ...
Provision of liability policies and the liability sections of package insurance policies, such as the personal automobile policy (pap), that pay medical expenses without regard to fault. ...
Husband's interest in his wife's property upon her death. A husband has an insurable interest in that property and can purchase a property and casualty insurance policy to cover the ...
Smallest acceptable premium for which an insurance company will write a policy. This minimum charge is necessary to cover fixed expenses in placing the policy on the books. ...
Local life insurance office that sells and services ordinary life insurance as well as other forms of life insurance except debt insurance. ...
Ratio of the insurance company's investment in common stocks dividend to its adjusted surplus account. This ratio shows how vulnerable the company's surplus is to the stock market ...
Inverse of the actuarial present value of a life annuity, taking the employee's life expectancy into account, to commence income payments at the normal retirement age of the employee. It is ...
Have a question or comment?
We're here to help.