Life Insurance Planning
Generally
The main reasonfor life insurance planning is to provide liquidity for paying an estate tax or for business succession.
Terms
cash value
death benefit
guaranteed premium
life expectancy
Types of Policies
Term Insurance
Whole Life (WL)
- traditional WL
- variable WL
Universal Life (UL)
- traditional UL
- guaranteed UL
- variable UL
- indexed UL
- guaranteed indexed UL
- guaranteed variable UL
N.B. A traditional WL policy does not have term insurance blend, but WL can consist of a significant amount of term insurance. Only the original WL portion has a level guaranteed premium.
Trust-Owned Life Insurance
The purpose of having a trust own life insurance is to get the payout out of the insured’s estate.