Endorsement Split Dollar and Carrier Alternate Term Rates

[CaliBen]

For a new endorsement split dollar plan, to be effective in 2016 how does one determine if the economic benefit may be valued by the insurance carrier’s one-year term rates? I see that the rates must be (1) generally known to persons who apply for term coverage; and (2) regularly sold by the insurer.

The illustrations from the insurance carriers (Pacific Life, John Hancock) all show economic benefit based on their lower term rates, but then in the footnotes state that “we don’t give tax/legal advice etc.”

Are plan sponsors using these lower economic benefit amounts? What kind of due diligence can be done?

[Mark Whitelaw]

Contact the agent or insurance company. They have split dollar administration / marketing support pieces that detail their rates per $1,000 of economic benefit at all ages for use by plan administrators.