Life insurance is protection against financial loss that would result form the premature death of an insured.


When used for its typical purpose, life insurance coverage is an appropriate way to protect dependents in the event of an unexpected death of a breadwinner. However, when used for other purposes,  such as retirement savings, funding higher education, or estate planning needs, life insurance is often not the best choice.  The tax advantages of insurance contracts are often more than offset by excessive costs.

Fee-only permanent life insurance contracts, which are lower in cost and without surrender charge, are more flexible and generally more effective.  When used for estate planning purposes, often within irrevocable trusts,  permanent fee-only life insurance can be an effective tool to efficiently lower income tax liability, remove assets from a taxable estate,   and create instant liquidity when needed for the payment of estate tax.