The scenario: Jill is an affluent customer whose net worth creates a $26 million estate tax liability. She has a life insurance policy to help cover her estate taxes when she passes away, but the death benefit is only $6 million.

The challenge: Jill’s total death benefit coverage should be the same or higher than her estate tax liability, so she needs an additional $20 million in protection. Otherwise, her loved ones will have to use other assets to pay her estate taxes — depleting the financial legacy she’s planned for them.

The solution: Jill’s financial professional recommends purchasing a Protective Indexed Choice UL policy with a $20 million death benefit to cover the gap. She’s a standard non-tobacco rate class and her annual premium is $1,270,607. The death benefit will pass to her beneficiaries income-tax-free, giving them the cash they’ll need to pay her estate taxes.

What makes this solution different: Jill’s financial professional compares options and determines Protective Indexed Choice UL is the most cost-effective solution for her needs. The policy is guaranteed to age 90 — past her life expectancy — and could last until age 97 on the current basis.

Consider indexed universal life for large cases

Each estate planning case is different, and there’s no one-size-fits-all life insurance solution to cover every customer need. When customers have a significant estate tax liability, compare solutions and see how Protective Indexed Choice UL can be a cost-effective option. Learn more on our product page and visit our estate planning page for additional resources.