What Is Private Split Dollar Life Insurance?
61667 POINTSview profileSteve SavantSyndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale ArizonaPrivate split dollar is a sharing arrangement of cash values and death benefit coverage between two parties with insurable interest. Generally speaking split dollar life insurance arrangements are popular between business owners and key executives as a retention benefit of employment. It can also be used between the grantor of an estate and an Irrevocable Life Insurance Trust as financial leverage in paying federal and/or state estate taxes.Answered on September 7, 2013flag this answer.JPG)
63333 POINTSview profilePeggy MaceMost of the U.S.Private split dollar life insurance is a plan that allows for the costs and/or benefits of a life insurance to be split between two private parties. Those participating in private split dollar arrangements are usually family members or their trusts. Often, a second to die life insurance policy is used with a life insurance trust. To find out more about options using private split dollar life insurance, contact a knowledgeable life insurance agent.Answered on September 8, 2013flag this answer
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