Can Second to Die Insurance be Used Inside a Qualified Pension Plan?

Many authorities seem to believe it should not. In a 1997 bulletin reporting on the American Society of Pension Actuaries Conference that year, the AALU reported that the IRS may question the acceptability of the acquisition by a qualified pension plan of a second-to-die contract—­presumably on the lives of an employee participant and that person’s spouse. The Bureau of National Affairs (BNA), a private tax reporting service has reported that “Employers considering second-to-die life insurance contracts inside defined benefit or money purchase plans would be well advised to reconsider.”

Buyer Beware: Does Your Second-to-Die “Survivorship Life” Insurance Policy Illustration use Loans to Finance Premiums?

View Lifequotes wide array of policies.

Reproduced with permission.  Copyright The National Underwriter Co. Division of ALM

Leave a comment

A Quick and Easy Life Insurance Needs Calculator