WHITEPAPER: Group Term Life Insurance Carve-Out Plans

Employer-sponsored life insurance has traditionally played an important role in an executive’s pre-retirement planning for family and financial obligations.  Many view the group life insurance plans as a large part of their estate planning strategy.  Group life plans however, are not portable at retirement thus creating a void in the Executive’s planning needs.  A company can give its executives the opportunity to enhance their families’ financial security, both pre- and post-retirement, through ownership of individual life insurance coverage and policies.

To provide key executives additional or more efficient coverage, many employers utilize a common planning strategy, referred to as a Group Term Carve-Out (GTCO), funded with Split Dollar Life Insurance. The GTCO Plan “carves-out” a group of key employees from the group life insurance plan and replaces the coverage in excess of $50,000 with an employer-owned split dollar life policy.

Read the full Whitepaper Below:

A Look Into Group Term Life Insurance Carve-Out Plans