Note 5—Cash Surrender Value of Life Insurance
Life insurance is provided under split dollar life insurance agreements whereby the Company will recover the premiums paid from the proceeds of the policies. The Company recognizes an offset to expense for the growth in the cash surrender value of the policies.
The Company recognized cash surrender value of life insurance policies, net of loans of $5 at August 31, 2013 and 2012, secured by the policies, with the following carriers as of August 31, 2013 and 2012:
| |
2013 | 2012 | |||||
|---|---|---|---|---|---|---|---|
|
John Hancock |
$ | 4,450 | $ | 4,343 | |||
|
John Hancock (formerly Manufacturers' Life Insurance Company) |
1,009 | 954 | |||||
|
Metropolitan Life Insurance |
1,739 | 1,768 | |||||
|
Other life insurance carriers |
80 | 80 | |||||
|
|
$ | 7,278 | $ | 7,145 | |||
Subject to periodic review, the Company intends to maintain these policies through the lives or retirements of the insureds.