Category: Estate Planning

After some research this FindLaw article offered the best explanation of Charitable Remainder Trusts.   Life insurance is a common component of these trusts to replace for your heirs the money that goes to charity, often with a second-to-die life insurance, also called survivor or survivorship life insurance.

The intriguing question is whether financial planners are offering the best, most objective recommendation for life insurance.  Do they play favorites with one or two particular carriers?   In 2011 many life carriers have introduced new survivor universal life (SUL) products.   I have access to comparison software on SUL for the major carriers.   It never hurts to get a second opinion on a proposal for life insurance.  Make sure you are provided with a full illustration to any life insurance proposal, and it’s best to review it carefully because your signature is required for that illustration for any permanent life insurance application.  They can easily be emailed as an attachment.  You could save a great deal of money by comparing apples-to-apples the illustration presented with alternatives from other carriers.   I will be glad to provide you free quotes comparing in detail the major life insurance carriers products and premiums.

Continue reading “Charitable Remainder Trusts” →

There are many worthwhile charitable organizations to give to.   Education, medical care and research, churches, human rights organizations all need assistance. Life insurance can increase your contribution.   For example, a 65 year old female, preferred non tobacco rate as an example quoting Lincoln National Life insurance Company with a lifetime guaranteed universal life.

$100,000       benefit      $146.50  monthly

$100,000       benefit      $25,578   single premium

$1,000,000    benefit      $1,351.60 monthly

$1,000,000   benefit       $237,686   single premium

The Wall Street Journal had an article 10/3/10 on “Shift to Wealthier Clientele Puts Life Insurers In a Bind“. Since 1985 policies for families with children is down 45%, while million dollar policies account for well over 50% of the new policies sold.

It’s unfortunate parents don’t pick up at least a term policy to protect their kids.   Term is inexpensive.  A $250k 20 year term policy, preferred non smoker male, is $17.52 a month with Genworth Life and Annuity, 30 year is $25.98.  I guess the counter argument is that it’s fairly unlikely for one to pass away in their 30’s, 40’s or 50’s.  Granted it’s uncommon, but in The Boston Globe online today, on the main page, was an obituary for a woman 52.   Your 50’s could be when the kids are still under your roof or in college.

The tax advantages of permanent life insurance are there for the wealthy.  I ran some numbers on permanent, G-UL,  today for age 65.  A $1m policy for a female non smoker age 65, runs from about $15k to $19k a year, regular rates depending on your health, with Lincoln National.  The math looks favorable to me.