Life Insurance Solutions for Estate Tax Challenges

Katt, Peter C.
March 2010
Journal of Financial Planning;Mar2010, Vol. 23 Issue 3, p38
Academic Journal
The author explores the two liquidity life insurance options, static-priced and market-priced, which would deal with the challenges of estate tax liquidity problems. He mentions that there differences are not risky, and it is important for the financial planners and their clients to understand these differences to create an informed choice. He states that it is a mistake for the insurance companies to recommend no-lapse UL choice with lifetime guarantee to their clients with estate tax problems. He cites that the policies of static-priced have little cash value, while market-priced have strong cash values.


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