Covering the needs of large estate plans
Life insurance helps ensure a customer’s beneficiaries will have the cash needed to pay taxes and other obligations promptly as part of an estate plan. Affluent customers often have significant estate tax obligations that require a high death benefit to cover their needs and protect their financial legacy. In these cases, an indexed universal life solution like Protective Indexed ChoiceSM UL can be more cost-effective and guaranteed to last longer than other solutions.
How it works for Jill, age 74
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.
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Protective Indexed Choice UL is a flexible premium universal life insurance policy issued in all states except NY by PLICO under policy form UL-27.
Protective Indexed Choice NY UL is a flexible premium universal life insurance policy issued in NY by PLAIC under policy form UL-27-NY.
Policy form numbers, product features and availability may vary by state. Consult policies for benefits, riders, limitations and exclusions. Subject to underwriting. Up to a two-year contestable and suicide period. Benefits adjusted for misstatements of age or sex. Protective Indexed Choice UL is not a security investment and is not an investment in the market. Your insurance professional can provide you with costs and complete details about the terms, conditions, limitations or exclusions that apply to this policy.
The tax treatment of life insurance is subject to change. Neither Protective nor its representatives offer legal or tax advice. Please consult with your legal or tax advisor regarding your individual situation before making any tax-related decisions.
All payments and all guarantees are subject to the claims-paying ability of the issuing company.
Protective is a registered trademark and Indexed Choice is a trademark of PLICO. The Protective trademarks, logos and service marks are property of PLICO and are protected by copyright, trademark, and/or other proprietary rights and laws.
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