Split-dollar life insurance is a specialized life insurance arrangement commonly used in estate planning and employee benefits. It involves sharing the costs and benefits of a life insurance policy between two parties, typically an employer and an employee, or between a business owner and a key employee.

In a split-dollar life insurance arrangement, the parties agree to split the premium payments, cash values, and death benefits of a life insurance policy. The employer or business owner often pays a portion of the premiums, and the employee or key executive pays the remaining portion. The agreement defines how the costs and benefits will be divided, and it may include provisions for the distribution of the policy's cash value and death benefit.

One common type of split-dollar arrangement is the "collateral assignment" method, where the employer pays the premiums and is named as the policy's beneficiary for the amount of premiums paid. The employee is typically designated as the beneficiary for the remaining death benefit and cash value. This allows the employer to recover the premium payments made upon the death of the insured.

Split-dollar life insurance can offer several advantages, such as providing valuable life insurance coverage for employees or executives and assisting with estate planning objectives. However, it is a complex strategy, and the tax implications can vary depending on the specific structure of the arrangement. Therefore, it is essential for both parties involved to carefully consider the legal and financial aspects and seek professional advice to ensure compliance with tax regulations and to optimize the benefits of the split-dollar life insurance arrangement.

To cancel your Trustage life insurance policy, you should follow a few steps to ensure a smooth process. First, review your policy documents to understand the cancellation terms and any potential fees involved. Contact Trustage customer service by phone or email to inform them of your decision to cancel. Be prepared to provide your policy number, personal information, and the reason for cancellation. Some insurance companies may offer a grace period or refund for premiums paid, depending on their policies.

It's essential to inquire about any potential refunds and the timeline for processing your cancellation. Additionally, consider obtaining alternative life insurance coverage before canceling your Trustage policy to avoid any gaps in protection. Always confirm the cancellation in writing and keep a copy of the correspondence for your records.