Howell & Associates Advanced Planning - Green Bay, WisconsinThis sales concept is appropriate where the client has an established estate plan that includes an existing second-to-die policy, and
• One of the insureds under the life insurance
policy has already died,
• The surviving insured is in relatively good health, and
• The client and advisors believe that there is a
remaining need for a life insurance death benefit.
A client’s existing second-to-die coverage is reviewed after a fi rst death has occurred, in order to determine whether they might be able to provide more for their heirs by converting the coverage into a single life policy.
In some cases, a single life policy insuring the life of the surviving client may offer an attractive alternative to keeping the existing second-to-die policy. Utilizing the second-to-die policy values (possibly through a Section 1035 exchange) might provide much more for the client’s heirs.
• Increased the death benefit available to the trust beneficiaries.
• The new policy has a No-Lapse-Guarantee feature, providing death benefit guarantees
No-Lapse-Guarantee Universal Life: If the client’s primary consideration is death benefi t/premium guarantees and cash value accumulation is not needed.
Current Assumption Universal Life/FIUL: If the client’s primary consideration is cash value accumulation..