A method of determining Life Insurance needs by considering a person’s income, expenses, remaining years of earning capacity, and depreciation in the value of the dollar over time.
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Split Dollar Coverage
An arrangement under which an employer pays that part of the premium that equals the annual increase in the cash value of a policy, while the employee pays the rest. Under assignment, upon the death of the employee the employer recovers the total of its payments from the proceeds of the policy, with the remainder going to the employee’s beneficiary.