by John Darer® CLU ChFC MSSC RSP CLTC
Level premium term life insurance which can go out to age 95 is now available at very attractive long term premiums so that older plaintiffs, plaintiff attorneys and others who can't afford, or choose not to pay, higher premiums for whole life or other permanent coverage.
For example a male age 70 might be able to get $500,000 coverage for $8,050 annually, that stays level for 20 years.
Life insurance proceeds are generally income tax free and if the application and ownership is properly structured proceeds when paid may be outside of the insured's estate.
Some possible uses of life insurance at age 65 plus
- Older plaintiffs can solve for post-mortem liquidity needs or bequests without breaking the bank or forgoing coverage due to the burden of whole life cost.
- Older healthy grandparents or parents can provide for a special needs child.
- The healthy spouse of a disabled plaintiff can purchase insurance to enhance settlement recovery if he or she were to pass before the disabled spouse.
- Equalize inheritances if giving business to one child and have other children who you love, but are not interested in the business.
- Can fund buy sell agreements for law firms. There are options for senior partners who are active as partners and want to continue practicing into their 70s and even 80s
- Enhanced structured attorney fees
- A chance to make up for not buying insurance when you were younger and it was cheaper.
More information on the use of life insurance in the settlement planning process. or watch my podcast