Oregon Split-Dollar Life Insurance

• Category: Corporations - Public - Disclosure and Notices
• State: Multi-State
• Control #: US-CC-24-263D
• Format: Word; Rich Text

Description

This sample form, a detailed Split-dollar life insurance document, is a model for use in corporate matters. The language is easily adapted to fit your specific circumstances. Available in several standard formats. Oregon Split-Dollar Life Insurance is a type of life insurance policy that is commonly used by businesses and individuals in Oregon to provide coverage and financial benefits for both the insured individual and another party, often an employer or key employee. This unique insurance arrangement offers the flexibility to share the cost, ownership, and benefits of a life insurance policy between two parties. Split-Dollar Life Insurance differs from traditional life insurance policies as it allows for the division of premium payments, cash values, and death benefits between the insured and the third-party beneficiary. Generally, split-dollar arrangements involve one party paying the policy's premium, while the other party receives a portion of the policy's death benefit. In Oregon, there are different types of Split-Dollar Life Insurance that individuals and businesses can choose from based on their specific needs and objectives. Some of these variations include: 1. Endorsement Split-Dollar: This type of split-dollar agreement involves an endorsement added to an existing life insurance policy. It allows for customization of the policy to determine how the premium, cash value, and death benefit will be allocated between the insured and the other party. 2. Collateral Assignment Split-Dollar: In this type of arrangement, the policyholder assigns a portion of the policy's cash value to the other party as collateral for a loan or to secure an obligation. The policy's death benefit is often used as the loan repayment source. 3. Loan Regime Split-Dollar: Under this structure, one party typically makes premium payments on the policy while the other party provides a loan to fund these payments. The loan is repaid using the policy's cash value or death benefit proceeds. 4. Equity Split-Dollar: A more complex form of Split-Dollar Life Insurance, this arrangement involves the use of an equity interest in the policy's cash surrender value or death benefit. It is commonly used in business succession planning. Split-Dollar Life Insurance in Oregon provides several benefits, including tax advantages, flexible distribution of premiums, and death benefits customization. It is essential to consult with a qualified insurance advisor or legal professional familiar with Oregon insurance laws to determine the most suitable type of Split-Dollar Life Insurance for your specific circumstances.

Oregon Split-Dollar Life Insurance is a type of life insurance policy that is commonly used by businesses and individuals in Oregon to provide coverage and financial benefits for both the insured individual and another party, often an employer or key employee. This unique insurance arrangement offers the flexibility to share the cost, ownership, and benefits of a life insurance policy between two parties. Split-Dollar Life Insurance differs from traditional life insurance policies as it allows for the division of premium payments, cash values, and death benefits between the insured and the third-party beneficiary. Generally, split-dollar arrangements involve one party paying the policy's premium, while the other party receives a portion of the policy's death benefit. In Oregon, there are different types of Split-Dollar Life Insurance that individuals and businesses can choose from based on their specific needs and objectives. Some of these variations include: 1. Endorsement Split-Dollar: This type of split-dollar agreement involves an endorsement added to an existing life insurance policy. It allows for customization of the policy to determine how the premium, cash value, and death benefit will be allocated between the insured and the other party. 2. Collateral Assignment Split-Dollar: In this type of arrangement, the policyholder assigns a portion of the policy's cash value to the other party as collateral for a loan or to secure an obligation. The policy's death benefit is often used as the loan repayment source. 3. Loan Regime Split-Dollar: Under this structure, one party typically makes premium payments on the policy while the other party provides a loan to fund these payments. The loan is repaid using the policy's cash value or death benefit proceeds. 4. Equity Split-Dollar: A more complex form of Split-Dollar Life Insurance, this arrangement involves the use of an equity interest in the policy's cash surrender value or death benefit. It is commonly used in business succession planning. Split-Dollar Life Insurance in Oregon provides several benefits, including tax advantages, flexible distribution of premiums, and death benefits customization. It is essential to consult with a qualified insurance advisor or legal professional familiar with Oregon insurance laws to determine the most suitable type of Split-Dollar Life Insurance for your specific circumstances.