Traditional DB Funding w/insurance

[JAY21]

I'm not an insurance fan in DB plans per se, but is there any cite that prevents us from deducting the full premium on say a whole life policy (split funding) if the policy is a paid up policy in say 5 years, but the assumed future working lifetime of the participant is say 20 years ? Would this be an unreasonable funding method if this accelerated full premium was deducted ? There's probably a Revenue Ruling or Rev. Proc. on this but not sure where. Both opinions and cites welcome.

[FAPInJax]

Well, you did ask for opinions!

My initial reaction is that it is fine. The value of the contract will still be used in the valuation.

Curiosity though, why have such a contract under the chance that it is NOT OK??

[JAY21]

Frank, I'm guessing that the 5-year paid up policy gives the salesman more (or accelerated) commissions, but I could be wrong. It just seems a little to accelerated for my taste but maybe there is nothing wrong it with.