Estate Tax Planning

Navigating the complexities of estate taxes doesn’t have to mean liquidating your hard-earned assets to satisfy the IRS. While a survivorship life insurance policy doesn’t directly shrink your taxable estate, it provides a powerful, tax-free mechanism to pay those obligations for pennies on the dollar—effectively covering a million-dollar tax bill with a fraction of that amount in premiums.

Estate Tax Planning

Whether you are looking to secure a new policy through an Irrevocable Life Insurance Trust to ensure tax-free benefits, or you are struggling with an existing policy where premiums keep rising and the finish line keeps moving, we are here to provide clarity. From comparing your current coverage against the latest market rates to finding favorable underwriting for those with medical impairments, our goal is to ensure your legacy remains intact.

Below are answers to the most common questions regarding how second-to-die insurance can protect your estate and provide peace of mind for your heirs.

Directly, no. Indirectly, yes. Your estate tax can only be reduced by reducing your taxable estate (e.g., gifts, family limited partnerships, etc.). However, if properly arranged, a survivorship life policy will be tax free to the beneficiary, no estate tax and no income tax. If, for example, you only pay over time $200,000 of premiums into a $1,000,000 policy, you’ve effectively paid $1,000,000 of estate tax for $200,000! Twenty cents on the dollar! This is much better than buying no insurance and paying $1,000,000 of your assets for $1,000,000 of tax!

First, request two in-force illustrations from the current carrier. One illustration should demonstrate how many more years to pay the premium to carry the insurance to age 100. The second illustration should do the same but assume a 1% reduction in the current dividend or current interest rate! Second, call our firm and we will do a comparison to measure the value of the current policy versus buying a new policy.

Simple. We will provide you with a comparison of the old policy and a new policy. Call one of our counselors at (800) 233-6481 with the current policy information and we’ll be happy to provide you with a comparison at no obligation.

Although our inventory of top-rated companies is constantly changing, we can shop 70-80 companies for second-to-die insurance, such as Prudential, MetLife, Transamerica, ING, John Hancock, AXA and Principal, to name a few.

The vast majority of our clients are just like you. By specializing only with Survivorship Life policies and having a long solid track record with the top insurance companies, we have the clout to obtain very favorable rates. We will search for a top-rated company with favorable underwriting that matches with your history of medical impairments. You are insurable at favorable rates!

Most importantly, the insured husband and wife should not own the policy or the policy could be taxed! An Irrevocable Life Insurance Trust or the insureds’ children will own the policy. Please call 1-800-233-6481 and one of our experienced counselors, at no fee, will advise and answer all your questions.

Questions? We would love to hear from you.

If you have questions about our services or would like to schedule a free policy review, please feel free to reach out to us.