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
Methods for payment of the value of a policy. An insurance company can select one of three options in settlement of a loss: make a cash payment; take possession of damaged or destroyed ...
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. ...
U.S. government agency (formerly the Atomic Energy Commission) responsible for regulating the nuclear energy industry. The commission also provides supplemental insurance for nuclear ...
Same as term Convertible Term Life Insurance: coverage that can be converted into permanent insurance regardless of an insured's physical condition and without a medical examination. The ...
The term pro rata cancellation comes from the Latin term pro rata, which means in proportion or according to a certain rate. The term pro rata cancellation is used in the insurance business ...
Projections of future accidental losses based on analyses of historical loss patterns. A projected loss picture is used to determine the pure cost of protection and the resultant basic ...
Association of independent agents whose objective is to further the interests of these agents through education, lobbying, and professional ethics. ...
Relinquishment of rights in an insurance policy or pension plan. For example, by withdrawing contributions to a pension plan, an employee forfeits future retirement benefits under that plan. ...
Coverage for damage or destruction of property due to a crime, and property lost due to a burglary, whether successful or attempted. An endorsement provides coverage for robbery and theft ...
Have a question or comment?
We're here to help.