Charitable Split Dollar Insurance Plan
Definition of "Charitable split dollar insurance plan"
Arrangement that provides for the reduction of estate taxes and the payment of tax-deductible life insurance premiums. The procedure is for a donor to present a charity with a gift of a sum of money that is tax deductible to the donor. The charity then transfers this gift in the form of a premium payment on an ordinary life insurance policy on the donor's life (the insured). The beneficiaries under the policy are the charity and the donor's heirs. Upon the death of the donor, the charity and the donor's heirs share in the death benefit from the policy. The donor's heirs also receive the cash value accrued on a tax-deferred basis within the policy.
Popular Insurance Terms
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Coverage in which the face amount of a policy remains uniform, neither increasing nor decreasing for as long as the policy is in force. ...
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Policy under which the insurer will pay the actual cash value of the property at the time the property was damaged or destroyed provided the loss falls within the limitations of the policy. ...
Death from other than accidental means. ...
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Method used to determine the policyholder's return on premiums paid into a life insurance policy. This method is illustrated in two ways:.Surrender of Policy Approach calculation of the ...
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