Tax TreatmentQuestion 716 of 716
A split-dollar life insurance arrangement is:
a.An agreement in which an employer and employee share the costs and benefits of a life policy, such as premiums, cash value, and death benefit
b.A type of deferred annuity
c.A term insurance rider that an employer attaches to the executive's personal life insurance policy in order to provide extra temporary death benefit at a low cost
d.A government insurance program
Explanation
Split-dollar is an arrangement between an employer and employee (or two parties) to split the premium costs and policy benefits of a life policy. It is not a government program, annuity, or rider.
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Related questions on this topic
- Premiums paid for personal life insurance are:
- The cash value inside a permanent life insurance policy grows:
- Life insurance proceeds may be pulled into the insured's taxable estate if, at death, the insured held:
- Required minimum distributions (RMDs) generally force the owner of a traditional qualified plan to begin taking taxable distributions:
- Premiums a business pays for key person life insurance are:
- In an executive bonus (Section 162) plan, the employer:
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PrepPass team · Verified against California Life & Health Insurance License Exam · How we review
Reviewed by John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verify)