1.] Retirement and/or Estate Planning
· Pension Plan Survivor Option Alternative = Costs less or Greater Benefit per $.
· Income Receives Favorable Tax Treatment = Greater net income for Survivor
· A source of Survivor Income Independent of Assets = Permits Early Distribution
o 2nd marriage: provides the widow a life income, the insured's heirs, the assets
2.] Income Replacement – PreRetirement
· Insuring the Income Source for the benefit of one or both Spouses
· Replacement of Soc. Sec. Income Lost at Death of Spouse,⅓ to ½ of prior income
· Provides mortgage payment for the widow(er) – maintain interest tax deduction
3.] Divorce & Pre-Nuptial Agreements [Alimony/2ndMarriage]
· Source of income guaranteeing alimony after death of the insured
· Source of income guaranteeing child support after death of the insured
4.] Insurance Marketing [Increased benefit – lower cost]
· Replacement of Term Ins. at renewal date – Continue coverage at a lower cost
· Replacement of Group Ins. lost at the retirement – Lower cost than conversion
· Replacement of Permanent Ins., more Survivor income - no additional cost
· Mitigates the amount of the extra premium for medically impaired insureds
5.] Uninsurable Long Term Care applicant [Impaired Risks]
· Insuring the healthy care-giver for the benefit of the impaired spouse
· One triggers – life income begins upon the death of the insured
6.] Corporations [Keyman or an Employee Benefit]
· Executive Perk (Golden Handcuff) to retain key management personnel
· Employee Benefit Program – tax deductible to the Corporation
· Income continuation for a spouse as expressed above
· Additional Disability Income benefit where the ‘total disability’ is due to death
7.] Child/Parent or Parent/Child
· A Son or Daughter insuring continued financial support of an aging parent
· A Father or Mother insuring a lifetime of income for a child
· Parent leaving a lifetime legacy not a lump sum - Spendthrift protection
· Life income for a Special needs child | 