Death of Split-Dollar Life? Investment News (02/04/02) Vol. 6, No. 5 p.1; Hansard, Sara
Insurance industry officials say that new policies recently adopted by the Bush administration will make some split-dollar insurance plans all but impossible to sell. While the new policies, issued in January, are more favorable than those in a policy statement issued in January of last year, industry officials say that insureds will be hit with a monstrous tax bill. The Bush administration is warning taxpayers that the premium payments for policies entered into as of Jan. 28 must be treated as loans. ACLI officials met with members of the administration over the last year to discuss the issue.