Estate Planning: Life Insurance

Life Insurance options with Florida Estate Planning
• Term Insurance – provides a preset amount of cash if you die while the policy is in force.
• Permanent Insurance – more expensive than term insurance, but it can never be cancelled.
• Whole Life Insurance – provides a set dollar amount of coverage which can never be cancelled, in exchange for fixed, uniform payments • Universal Life Insurance – a combination of both term and whole life insurance. Usually a lower cost than Whole life • Variable Life Insurance – invests the cash reserves in securities to allow for greater gains based on the markets performance.
• Single-Premium Life Insurance – a policy that is prepaid upfront in a single payment • Survivorship Life Insurance – second to die or joint insurance is a new form of life insurance

The federal tax laws governing survivorship life insurance are somewhat ambiguous. Because this is a new and complex area, you need to check with a good estate planning lawyer who has current knowledge of the tax rulings on this type of policy. Also, discuss this issue with your insurance agent to ensure your survivorship policy will have the effect you intend. It may be best to have the policy owned by a life insurance trust.

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