Estate Problem Solved

Dorothy is a retired executive with a considerable amount of assets and a complicated health history. She already has $5m in life insurance coverage and still has a need to leverage her money more efficiently. She is also concerned about the distribution of her estate, according to her wishes, after her death. While working with an Estate Attorney and a Financial Advisor, it was recommended that she purchase another life insurance policy to be used as a source of liquidity at her death. 

The tax-free death benefit can be used to:

• Pay Dorothy’s estate taxes 
• Create an estate for her beneficiaries 
• Equalize inheritance among her beneficiaries or
• Leverage annual gift tax exclusions 

The Solution

Female, age 69, Issued Standard Nonsmoker due to a complicated medical history

MVP’s Underwriting Director shopped this case to several carriers before an application was written. Most carriers were quoting best case scenarios as Standard with a T6-8 rating. The carrier that won the business used a healthy life-style crediting program as well as table shaving to get the case to Standard. 

The Policy:

• $1.5m level death benefit with a Lapse Protection Rider, Dorothy’s irrevocable trust is the owner and beneficiary
• Universal Life Policy 
• $38,000 annual premium 

First Year Target Premium: $41,500

Retirement Problem Solved

Dr. George’s agent performed a policy review with him and uncovered the fact that he would have a retirement shortfall because a current life insurance policy wasn’t performing suitably. Like many people today, George knows he must build a retirement pool of his own because traditional retirement vehicles are not substantial enough to maintain his current lifestyle.

Life Insurance in Retirement Planning (LIRP) can provide George with access to the potential policy cash value via tax-free loans and withdrawals to supplement his other sources of retirement income. If George dies before retirement, the life insurance tax-free death benefit provides cash to his family to compensate for the loss.

Retirement Solution

Male, age 67, Approved Standard Nonsmoker due to medical history 

The Policy:

• $1,770,000 initial death benefit, he is the owner and his wife is the beneficiary
• Indexed Universal Life Policy*
• $900,000 single premium via 1035 Exchange from existing life insurance policy

First Year Target Premium: $91,000

*MVP Financial used proprietary software to compare multiple products and carriers to determine which policy could provide the highest amount of cash flow.