Purchase of Life Insurance Policy

[bzorc]

A Defined Benefit Plan holds individual life insurance policies on eligible participants. One of the participants would like to purchase his insurance policy and hold it personally. This does fall, I believe, under the DOL class exemption. The major question at hand is whether or not there is some method to coming up with the amount of money necessary for the participant to purchase the policy. I was under the impression that it would be the current CSV of the policy; however, I have been told (informally) that there is some formula to determine this amount.

Am I off base, or is there a formula to determine the amount of cash necessary to purchase the policy? Thanks for any replies.