Most people purchase life insurance to protect their family when they passed away. Unlike term, universal or whole life insurance, where there is no financial market risk component, Variable Universal Life insurance (VULI) is subject to financial market risk. Combining something that is intended to be...
recent Financial Planning
Magazine article discusses new tax laws that may increase the
popularity of combining life insurance and annuities with long-term care
insurance. Long-term care ("LTC") insurance sales have been in a decline over
the past several years. Many believe that...
of creditor risk and the development of a strategy for acquiring creditor
protected assets is an essential element of every good estate plan. In an effort to provide financial security
for a loved one upon death, certain creditor protection benefits exist for life
insurance policies. New...
Insurance is subject to estate tax if the insured owns it. One way to avoid estate taxes is for an
irrevocable trust for the benefit of the children of the insured to be the
applicant, owner and beneficiary of the insurance policy. But, under this solution, the spouse of the
insured gets no...
A "viatical" is a contractual arrangement in which an investor buys a life insurance policy from an insured (or, perhaps, another) for a negotiated purchase price. The investor generally continues to pay the premiums on the policy and is paid the proceeds from the insurance...
The most basic purpose of having a life insurance policy is to provide some assistance for loved ones when you die. Wealthier people sometimes use life insurance for estate planning , while most people expect the policies on which they have paid premiums for decades to help their heirs get by - or at...
Many are feeling this week how the congressional quagmire has impacted their portfolios. One other impact that many may be unaware of is that the downgrade of US credit rating has changed the credit rating of major life insurance companies (see below).
What action should you be taking to review your...
New York Attorney General Eric Schneiderman has issued subpoenas to
at least nine leading life insurers to examine whether the firms have
adequately ensured payouts on policies of deceased customers. The
investigation is believed to encompass three areas of inquiry. The
first is whether life insurance...
As estate planning practitioners are well aware, IRC Section 2042 includes in the gross estate:
insurance proceeds on the life of the decedent receivable by the executor; and
proceeds on the life of fhe decedent received by others, where the
decedent possessed any incident of ownership...
this Analysis, Brian T. Casey and Rachel B. Coan focus on
"stranger-originated life insurance" or "STOLI"-- in which
a life insurance policy is originated primarily or solely for the purpose of
resale. They chronicle how the clash of the insurable interest requirement and
Life insurance can be a powerful tool in your estate plan . It can be relied on to help your surviving spouse or heirs when you're gone. If your estate is taxable, life insurance may be used to pay estate taxes and other expenses.
As with any aspect of estate planning, the devil is in the details...
The importance of life insurance for parents with young children cannot be overstated. However, insurance is just one part of the story. To ensure your child's financial security, you need to properly plan for how the proceeds will be distributed to your child, as well as for how your child's...