Two Interesting Alternatives for the Funding of Life Insurance Premiums: Split Dollar Arrangements and Third Party Financing

In sophisticated estate planning, life insurance is often an integral part, where its benefits can be significant when used properly. Although, the expense of paying premiums can be steep, particularly when the amount of coverage grows into the many millions of dollars. The author introduces split dollar arrangements and third party financing as two options for funding large policies. This article explores the strengths and weakness of these two interesting alternatives for the funding of insurance premiums.

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Featured in Edward Koren's five-volume treatise, Estate and Personal Financial Planning.