Sy Schnur CPA, Busn. Valuer, Litigation Support Expert Witness & Ins Agent

We Do EVERYTHING MONETARY

Ins Overview4

EVERYTHING Monetary

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The main reason some couples carry life insurance is to pay estate taxes. Because a properly structured estate plan can defer all estate taxes when the first spouse dies, estate liquidity insurance is not needed until the second spouse dies.

Second-to-die insurance pays off only when the second spouse dies. Because it is based on the mortality of two lives instead of one, premiums are usually significantly lower than on a standard policy.

COMBINING POLICIES

Policies may be combined to reduce costs and IM- other customer's needs. One popular feature is the addition of an inexpensive term rider to cover the insured's children. Another technique is to have both spouses insured by the same policy, thereby reducing the policy administrative costs.

Types of coverage may also be combined. For example suppose a person wanted to have the flexibility of variable life insurance with its ability to increase or reduce the premiums and to shift the investments around within the accounts offered by the insurer. But also imagine that the amount of coverage required dictated the use of term insurance. Both objectives can be achieved by adding a term rider to a variable life policy. The term premium would be low, and the coverage could be converted. This approach also works with traditional whole life and universal interest sensitive policies

LIFE INSURANCE POLICY CHARACTERISTICS

TERM POLICIES

• Protection for a limited time - generally At 70.

• Low initial premium, but rising with each renewal.

• Level Death Benefit, unless reducing a benefit plan.

• No cash values will accumulate.


WHOLE LIFE INSURANCE POLICIES

• Protection continues to age 100, thus the permanent name.

• Premium does not increase; may even reduce or cease.

• Level or increasing death benefit.

• Cash values accumulate on a tax free ba,4t:.