NU Online News Service, March 3, 2004, 3:10 p.m. EST – Jefferson Pilot Financial says its LifeComp series of split-dollar life policies offers several arrangements to comply with new Internal Revenue Service rules.[@@]
The regulations, announced last fall, mostly eliminate “equity split-dollar” insurance arrangements between employers and employees and required existing split-dollar plans to abide by the regulations by Dec. 31, 2003.
Jefferson Pilot Financial, in Greensboro, N.C., says it modified its LifeComp products to meet the requirements and claims to be the first carrier to offer a wide range of income tax-compliant split-dollar policies.
One of the Jefferson Pilot products, Gemini LifeComp, enables the sharing of premium, cash values and death benefits of a single life insurance policy between an employer and employee. Because each party owns an undivided interest in the funding policy, Gemini is not considered a split-dollar arrangement under the regulations, says Jefferson Pilot.