Copyright ©2004 Wall Street Instructors, Inc. All rights reserved. No portion of this publication may be reproduced, stored in a retrieval system, or transmitted in any form by any means electronic, mechanical, photocopying, recording or otherwise without prior written permission of Wall Street Instructors, Inc.
Group Carve-Out Plan
The important points addressed in this lesson are:
A key executive covered under a group carve-out plan can overcome the group term life insurance limitations resulting from the group term insurance non-discrimination requirement
The universal life insurance policy issued in a group carve-out plan is portable and may be continued by the executive beyond retirement
A participant in a group carve-out plan avoids the Table I imputed income costs for group term life insurance coverage in excess of $50,000
The universal life insurance policy issued under the group carve-out plan has tax-deferred cash values that may be accessed by the executive to provide additional retirement income