Legacy Planning CFG Brokerage Network can show you how life insurance and an irrevocable life insurance trust can give your client extra advantages. Life insurance plays a critical role in estate planning. It provides cash to pay estate settlement expenses and taxes – and it provides the capital to help meet the financial needs of your client’s family. While it gives them the security of a death benefit, whole life insurance can also be used to help them accumulate savings to supplement their retirement income. Life insurance coupled with an irrevocable life insurance trust can be even more advantageous for your clients, particularly if the joint assets of them and their spouse are worth more than two times the applicable exclusion amount. This is the usual cut-off point where their heirs can, through proper estate planning, receive your client’s assets without paying estate taxes. An irrevocable life insurance trust offers several unique advantages: The proceeds of the life insurance policy can be insulated from estate taxes. Life insurance proceeds can pass income tax-free to your client’s beneficiaries. The premium may be gifted to the trust, and thereby reduce the remaining taxable estate.