General life insurance

Life Insurance – A Remedy for Uncertainty.

Topics: Estate planning, General life insurance

In an uncertain environment, clients should still move forward with life insurance planning because it: (1) focuses clients on analyzing the assets required to maintain their lifestyle, (2) implements needed planning without leaving clients feeling “locked-in,” and (3) offers both a lifetime investment component and death benefit protection, while simultaneously addressing practical needs and tax...

Payment of Group Life Benefits Can Be Denied Despite Two-Year Incontestability Clause and Employer’s Misrepresentation of Coverage

Topics: General life insurance

A U.S. District Court held that: (1) a group life insurance policy’s two-year incontestability clause, (2) the employer’s misrepresentation regarding the retired employee’s continued coverage, and (3) the retired employee’s payment of annual premiums did not preclude insurer from asserting that the retired employee was not in fact covered under the employer-provided coverage.

ING Trust Update: The IRS Giveth & the IRS Taketh Away

Topics: General life insurance

As discussed in WRMarketplace No. 16-­36, to create an ING trust, the trust creator (“grantor”) must avoid both grantor trust status for federal income tax purposes and making a completed gift to the trust. The IRS has issued several private letter rulings (“PLRs”) in this area providing guidance on powers that the grantor and others...