Life Insurance-Premium Financing
Overview
Life insurance can play an important role in helping achieve the legacy and financial objectives of an individual or family—especially those with significant taxable estates and illiquid assets such as privately held businesses and real estate. For those who have assets that exceed the federal estate tax-exemption thresholds—$5,430,000 for an individual, potentially $10,860,000 for a married couple in 2015 (both amounts indexed annually for inflation)—the concern is that a large portion of assets in the estate (meant for beneficiaries to be received in-kind) may have to be liquidated to pay estate taxes. This white paper illustrates how life insurance can be a key in meeting the liquidity needs without having to liquidate assets to pay estate taxes.