Glossary of Life Insurance Terms

Glossary of Life Insurance Terms

ABSOLUTE ASSIGNMENT: A transfer of a policy through which the policyowner shifts full and absolute control and all policy rights to the assignee. See also: assignment; collateral assignment.   ABSOLUTE OWNERSHIP: All legal rights and control of the incidents of ownership (e.g., selection of beneficiaries, settlement options, etc.) in a policy, without limitation, qualification, or restriction, are held by the policyowner.   ACCELERATED OPTION:  Accumulated dividends and cash value are used to pay-up a life insurance policy…

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Split-Dollar Life Insurance FAQs

Split-Dollar Life Insurance FAQs

There are questions surrounding split-dollar life insurance. Life insurance is a big deal in any household. Without it, you’d have to worry about your loved ones. There are many options to choose from when it comes to buying life insurance. Our experts answer some questions revolving around this topic. Question – What are the grandfathering provisions for equity split-dollar plans entered into prior to September 18, 2003? Answer – The answer depends on when the…

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Section 162 Plans FAQs

Section 162 Plans FAQs

There are questions surrounding Section 162 plans. Life insurance is a big deal in any household. Without it, you’d have to worry about your loved ones. There are many options to choose from when it comes to buying life insurance. Our experts answer some questions revolving around this topic. Question – What is a controlled executive bonus arrangement? Answer – A controlled executive bonus arrangement, also known as a restrictive or golden executive bonus arrangement,…

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Pension Maximization FAQs

Pension Maximization FAQs

There are questions surrounding the pension maximization of life insurance. Life insurance is a big deal in any household. Without it, you’d have to worry about your loved ones. There are many options to choose from when it comes to buying life insurance. Our experts answer some questions revolving around this topic. Question – How does one determine if a pension maximization strategy is feasible? Answer – A pension maximization plan is not for everyone….

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Nonqualified Deferred Compensation FAQs

Nonqualified Deferred Compensation FAQs

There are questions surrounding nonqualified deferred compensation in life insurance. Life insurance is a big deal in any household. Without it, you’d have to worry about your loved ones. There are many options to choose from when it comes to buying life insurance. Our experts answer some questions revolving around this topic. Question – Where does life insurance fit in a nonqualified deferred compensation plan? Answer – Life insurance is the tool of preference to…

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Life Insurance in Qualified Plans FAQs

Life Insurance in Qualified Plans FAQs

There are questions surrounding life insurance in qualified plans. Life insurance is a big deal in any household. Without it, you’d have to worry about your loved ones. There are many options to choose from when it comes to buying life insurance. Our experts answer some questions revolving around this topic. Question – Can life insurance be used in a Keogh (HR-10) plan? Answer – A Keogh plan is a qualified plan covering a proprietor…

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Key Employee Life Insurance FAQs

Key Employee Life Insurance FAQs

There are questions surrounding the key employee life insurance plans. Life insurance is a big deal in any household. Without it, you’d have to worry about your loved ones. There are many options to choose from when it comes to buying life insurance. Our experts answer some questions revolving around this topic. Question – Is there a way around the nondeductibility of insurance premiums for key employee life coverage? Answer – As a practical matter,…

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Death Benefit Only Plan FAQs

Death Benefit Only Plan FAQs

There are questions surrounding the death benefit only plan of life insurance. Life insurance is a big deal in any household. Without it, you’d have to worry about your loved ones. There are many options to choose from when it comes to buying life insurance. Our experts answer some questions revolving around this topic. Question – How should the corporate resolution authorizing the plan and the purchase of supporting life insurance be phrased? Answer –…

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Charitable Uses of Life Insurance FAQs

Charitable Uses of Life Insurance FAQs

There are questions surrounding the charitable uses of life insurance. Life insurance is a big deal in any household. Without it, you’d have to worry about your loved ones. There are many options to choose from when it comes to buying life insurance. Our experts answer some questions revolving around this topic. Question – How can life insurance combined with gifts of stock to charity help a client keep a family business in the family?…

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Buy-Sell Agreements FAQs

Buy-Sell Agreements FAQs

There are questions surrounding buy-sell agreements. Life insurance is a big deal in any household. Without it, you’d have to worry about your loved ones. There are many options to choose from when it comes to buying life insurance. Our experts answer some questions revolving around this topic. Question – What should be done with existing life insurance where a corporation changes from a stock redemption to a cross purchase agreement? Answer – In the…

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