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Pre-paid premium accounts for Corporate Life Insurance policies


Guest KNewman
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Guest KNewman

Looking for guidance on pre-paid premiums account for corporate sponsored life insurance. Of particular interest.

- has anyone had any experience in setting up these accounts?

- can the corporation to request repayment of the premiums?

- are these premiums considered part of the policy and subject to the conditions of an underlying collateral assignment?

- is the pre-paid premium an expense item? If so, can the corporation claim an asset to offset this expense?

- Anything else would be helpful

Thanks.

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Sounds like a whole life policy scheme where as you continue to pay premiums pre-paid death benefits continue to build up. I think these policies are designed to be paid up at some future point with no premium thereafter. Never did much in the way of individual life insurance policies, but I seem to remember these types of policies. Can’t swear to it though. I’m not sure exactly how they work but I don’t think they are part of the cash value that can be distributed before death.

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