Life insurance held within an Irrevocable Life Insurance Trust (ILIT), often referred to broadly as **Trust Owned Life Insurance (TOLI)**, is a cornerstone of advanced estate planning. The primary goal is to ensure the death…
In the specialized world of **Participating Whole Life Insurance**, the utility of the policy as a liquidity vehicle hinges on the **Policy Loan** feature. When a policyholder leverages their cash value, the interaction between the…
In the modern landscape of permanent life insurance, the "Living Benefit" revolution has transformed policies from simple death benefit contracts into hybrid vehicles capable of funding catastrophic health costs. However, a pervasive ambiguity exists regarding…
For closely held corporations and partnerships, a **Buy-Sell Agreement** funded by life insurance is the primary instrument for ensuring business continuity and liquidity upon the death of a shareholder. However, the structural choice between a…
Advanced philanthropic planning often presents a unique dilemma for high-net-worth (HNW) donors: the desire to make a substantial, lasting charitable gift versus the obligation to preserve or replace the inheritance for their heirs. **Life Insurance**…
For the **Ultra-High-Net-Worth (UHNW)** segment, **Private Placement Life Insurance (PPLI)** represents the pinnacle of tax-efficient, customized wealth management. PPLI is essentially a Variable Universal Life (VUL) policy sold exclusively through private offerings, often leveraging the…
The **Section 162 Executive Bonus Plan** is one of the simplest yet most effective ways for corporations to provide non-qualified benefits to key executives using permanent life insurance. Unlike complex Split-Dollar or Non-Qualified Deferred Compensation…
In the dynamic landscape of financial planning, a life insurance policy purchased decades ago may no longer align with a policyholder's current objectives. It may be underperforming, overpriced, or simply obsolete compared to modern products…
For a contract to qualify as "life insurance" under U.S. tax law—and thus benefit from tax-deferred cash value growth and tax-free death benefits—it must satisfy the strict definitions outlined in **Internal Revenue Code (IRC) Section…
For nearly four decades, the actuarial definition of "life insurance" for tax purposes was governed by static interest rate assumptions codified in the 1980s. However, the **Consolidated Appropriations Act (CAA) of 2021** introduced a historic…