Split-dollar Life Insurance Premiums
About Split-dollar Life Insurance Premiums:
in relation to life insurance premiums, an arrangement whereby an employer pays a part of the premiums for an employee that is equal to the increase in the cash surrender value of the policy, and the employee pays the remainder. At death, the employer receives from the proceeds an amount equal to the cash surrender value, and the employee's beneficiary receives the balance. Each year the employee must include in gross income an amount equal to the 1-year cost of declining term life insurance protection to which he or she is entitled, reduced by the premium paid by the employee.
See Inheritance Tax and Inheritance Tax.
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