If a profit sharing plan has individual insurance policies for the participants, and one of the participants has terminated employment and not due any further contributions from the plan, how should the insurance premiums be paid if the participant hasn't taken a distribution of his vested account balance?

Generally, they are paid from the account balance. Of course, you only can do this up to the 25%/50% limitation.

This begs the question of what then. It would be nice if there was communication between the participant and the plan. Other options could include surrender for the cash value, if any. Or, the participant could "buy" the policy for the cash value, if any. There are old Revenue Rulings on point for the last two options

There are also PT Exemptions for the purchase and sale of Life Insurance from the plan.

77-8 & 92-6amends 77-8

Thank you for your help!

My recollection is that once employment ends, the insurance policy must be distributed or surrendered. Am I misremembering?

I was told recently by someone who I consider very knowledgeable that there is a requirement to offer the policy to the participant in a DC plan, of course at the cost of the policy cash surrender value.

I have never before heard of any requirement to do so. Is there one?