A split dollar plan in which the employer owns and controls a life policy on the life of an employee. The employee’s rights to certain policy benefits are protected by an employer endorsement.
This entry was posted in . Bookmark the permalink.
A method for determining reserves on Life Insurance contracts, whereby no reserve is required for the first year of a contract’s life, with an appropriate adjustment in subsequent years’ reserves to make up the difference. This method of valuation makes it possible for an insured to have more funds available for the high first year expenses incurred in the writing of Life Insurance.