Covering the needs of large estate plans

Life insurance helps ensure a client’s beneficiaries will have the cash needed to pay taxes and other obligations promptly as part of an estate plan. Affluent clients often have significant estate tax obligations that require a high death benefit to cover their needs and protect their financial legacy. In these cases, an indexed universal life solution like Protective Indexed Choice^SM UL can be more cost-effective and guaranteed to last longer than other solutions.

How it works for Jill, age 74 

The scenario: Jill is an affluent client whose net worth creates a $26 million estate tax liability. She has a life insurance policy to help cover her estate taxes when she passes away, but the death benefit is only $6 million.

The challenge: Jill’s total death benefit coverage should be the same or higher than her estate tax liability, so she needs an additional $20 million in protection. Otherwise, her loved ones will have to use other assets to pay her estate taxes — depleting the financial legacy she’s planned for them.

The solution: Jill’s financial professional recommends purchasing a Protective Indexed Choice UL policy with a $20 million death benefit to cover the gap. She’s a standard non-tobacco rate class and her annual premium is $1,270,607. The death benefit will pass to her beneficiaries income-tax-free, giving them the cash they’ll need to pay her estate taxes.

What makes this solution different: Jill’s financial professional compares options and determines Protective Indexed Choice UL is the most cost-effective solution for her needs. The policy is guaranteed to age 90 — past her life expectancy — and could last until age 97 on the current basis. 

Consider indexed universal life for large cases

Each estate planning case is different, and there’s no one-size-fits-all life insurance solution to cover every client need. When clients have a significant estate tax liability, compare solutions and see how Protective Indexed Choice UL can be a cost-effective option. Learn more on our product page and visit our estate planning page for additional resources.