The Post-Split Dollar WorldThe Post-Split Dollar World

Charles Ratner, national director of Personal Insurance Counseling, Ernst & Young, Cleveland, Ohi

How do advisors plan with life insurance in this supposedly post-split dollar world? The answer lies of course in a client's particular goals. But the options are relatively clear: Clients can use a combination of outright and deferred gifts of the premiums; employ private split dollar; turn to third-party premium financing; or buy life insurance in qualified plans.

If we had to handicap these horses in the race for the payment mechanism of choice, premium financing seems to be fast replacing traditional split dollar as the most widely illustrated payment mechanism for big policies. That's largely because the client doesn't have to pony up a l...