Key to Success: Carrier Selection / Case Design
Applicant Summary:
- Married couple, M 54, F 41, good health
- Attorney recommends $7M joint life insurance
- Policy will be held in an ILIT
- Policy benefits will be used to pay estate taxes
- Cash values are not relevant, only the death benefit matters
An advisor with a major mutual life insurer called yesterday for alternatives to his primary carrier’s whole life survivorship policy option. Neither client, nor their attorney, see the benefit of paying extra premium to purchase a policy that builds cash value. They prefer low-cost, term like insurance premiums. The policy will be held in an ILIT. The purpose of the life insurance is to fund their estate tax liability, at the lowest possible cost. They’d like to see guaranteed paid up options with premiums paid for 10 years, 20 years, and lifetime. Their options:
Industry Survey Results: Download Analysis
Policy Features:
- Low cost, fully guaranteed premium options
- Simple, term-like policy from a highly rated brand name insurer, no moving parts
- Policy has little or no accessible cash values
- Lowest cost structure for lifetime guaranteed coverage: annual premium $35,351
- The policyowner can opt to guarantee pay-up the policy in 20 years for $46,798
- 10 annual premium payments of $89,040 would also guarantee the $7M death benefit for life
