Reverse Split Dollar Life Insurance
Definition of "Reverse split dollar life insurance"
Policy that is the opposite of the traditional split dollar life insurance policy in that: the employee is the policyowner and as such can exercise all ownership rights inherit to that policy; the employee owns the cash value of the policy; the employees's beneficiary has the right to that portion of the death benefit equal to the cash value; the employer retains the right to that portion of the death benefit equal to the pure protection element (death benefit minus the cash value); the employer pays that portion of the premium charged for its economic benefit gained according to the PS 58 rate table; and the employee pays that portion of the premium equal to the total premium minus that part of the premium paid by the employer in the above.
Popular Insurance Terms
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Fund that contains the portion of the premium that has been paid in advance for insurance that has not yet been provided. For example, if a business pays an annual premium of $1000 on ...
Table used in calculating minimum non forfeiture values and policy reserves for ordinary life insurance policies. These tables, which give minimum values that must be guaranteed to policy ...
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