Prudential Rolls Out Split-Dollar Education Program

September 25, 2003 ( - The Internal Revenue Service's (IRS) release of split-dollar regulations has spurred Prudential Financial to roll out a new educational program to help its sales professionals advise their clients.

Prudential’s education program is designed to assist financial professionals consider what choices clients should or should not contemplate, and under what specific circumstances split-dollar arrangements should be made, according to a news release.

Included in the Prudential program are:

  • Toolkit materials – includes tax and legislative updates, various consumer presentations, access to answers to frequently asked questions and a forthcoming educational CD.
  • Industry expert calls – conference calls led by split-dollar experts designed to educate financial professionals.
  • Online resources –aWeb site linked through Prudential Xpress provides updates and information on split-dollar policies.
  • One-on-One consulting with advanced marketing –regular split-dollar case design consultation is offered to financial professionals, including decision tree analysis that helps in making suggestions to clients on split-dollar arrangements.
  • Illustration tools –various split-dollar capabilities for modeling multiple scenarios provide guidance on pre- and post-regulation.

Under a split-dollar life insurance arrangement, two parties agree to split the premiums or benefits, or both, of a life insurance policy.  The pool of assets is then held by the life insurance company, effectively placing the cash value beyond the reach of the employer or the employer’s creditors.  Such an arrangement often makes these policies popular vehicles to compensate employees, especially corporate executives, or to make gifts to one or more family members.   The IRS released the final regulations on tax treatments for split-dollar life insurance arrangements on September 11, 2003 (See  IRS Hands Down Final Split-Dollar Regulations ).

More information on Prudential’s program is available by contactingMichael Arcaro at (973) 802-2606.