High Limit Life Insurance

Purchasing life insurance can be a simpler process than purchasing disability insurance. For straightforward term policies (10-30 years, under 5 million in face), please use our quoter and eApply system. However, if you’re in need of high limit life insurance, then please read on before requesting a quote.

What is high limit life insurance?

Typically, it would be defined as a large (over 5 million dollars) face amount policy, often for a temporary business need or for an estate plan. Unlike traditional term insurance, high limit life insurance has a more challenging underwriting process. There are often more extensive medical exams and there may be a thorough review of financials and trust documentation.

That being said, these life insurance policies come in a number of different designs. We’ll look at both business and estate planning uses.

Business Uses for High Limit Life Insurance

There are several situations in business where a high limit life insurance policy will make sense, such as:

International Term Life
High Limit Life Insurance
Accidental Death and Dismemberment Insurance
Short Term Life
Buy Sell
Key Person

If you’d like to know how much life insurance you need or to get an immediate quote, you can we have tools to help you identify your life insurance needs.

After reading information about high limit plans you can contact us at 888-636-2310 to see if one of these plans fits your needs.

International Term Life Insurance

If you are traveling overseas or plan to live in a foreign country for a period of time, we offer international term life insurance plans. These plans can be purchased in 1 to 10-year increments. They will require a medical exam and the exam report must be completed in English. You can apply for this plan in the US or the country where you currently reside.

Life Insurance

We work with 60+ carriers and can offer life insurance plans with multi-million dollar face amounts. These plans can be for buy-sell agreements, key person policies, and of course for your personal needs, such as protecting your paycheck.

For those that need a plan in place quickly, we also offer no medical exam plans. These are term life plans with several carriers offering up to $1,000,000 of coverage.

Short Term Life Insurance

Let’s say that you need to close a loan, a venture capital infusion, or go to escrow quickly. The lending source requires a life insurance plan to be in force. You have already applied for a plan and are going through the underwriting process. You need something in the interim while you go through this waiting period.

What can you do? A short term life insurance plan fills this need. Read more about short term disability insurance and short term life insurance to see if one of those policies fits your needs. Contact us at 888-636-2310 if you need more information or a quote. We can also be reached by using the quote form on the left.

High Limit Accident Insurance

High limit accident plans are policies that can offer coverage to an individual or a group 24/7 with issue limits from $100,000 to $100 Million in case high limit life insurance of accidental death or dismemberment.

These plans can be tailored to insure an individual against high-risk situations such as war and terrorism. We can also provide coverage if you are in a war zone.

NOTE for the states of AK,DE,IA,MS,NE,NJ,NY,SC – This plan is only available as rider to an existing plan
NOTE for the states of MT,RI,SD – Benefit amount must be at least $1,000,000

Buy Sell Agreement – Fund your buy sell agreement with life and disability insurance
Key Person – Protect yourself and your business against death or disability.

Estate Uses for High Limit Life Insurance

For most people, there will be very little need for life insurance in their estate plan. That doesn’t mean that certain people won’t want to have an insurance policy payable to their beneficiaries upon their death. The need for life insurance in an estate plan typically comes from either highly illiquid assets being passed on or those that are subject to estate taxes.

Highly Illiquid Assets

Using high limit life insurance to equalize an estate is a popular strategy in estate planning.

Let’s say that you own and operate a ranching operation worth 10 million dollars. Although this is under the 2017 estate tax exemption of 10.98 million for a married couple, inheriting this asset could pose some potential problems.

You have two children, one who works in the business and one who does not. Would it be fair to the child who doesn’t work in the business to be disinherited if you left the entire ranch to the one who does work in the business? Would it be fair to the child who does work in the business to be partners with the uninvolved child upon your passing?

This is a case where a high limit life insurance policy could help to equalized the estate. By leaving the business to the child who works in it and leaving a life insurance benefit for the value of the business to the other child, each is able to get their share. This can be done without disrupting the business or creating bad blood between siblings.

Estate Taxes

Between the unlimited marriage deduction (you can leave an unlimited amount of assets to your spouse), portability (your spouse can inherit the unused portion of your estate tax exemption), and very high exemption limit (10.98 million for a married couple), very few people need to plan to pay estate taxes.

That being said, there is a subset of the population who require these types of policies.

Often written as a survivorship policy (payble to the beneficiary on the second death) and owned by a trust (to keep the policy out of your estate, sometimes referred to as an irrevocable life insurance trust or ILIT), this type of high limit life insurance is purchased to offset any estate tax liability that the beneficiaries may incur.

Upon the death of the second spouse, a death benefit will be paid to the beneficiaries (of the trust) so that they can use that money to offset any estate taxes that they might owe. Keep in mind that this strategy doesn’t eliminate the taxes, it just provides another bucket of money to help pay the taxes.

Summary

We specialize in disability insurance but our mission is to protect income. Whether that income is protected from an unfortunate death or the income to beneficiaries is protected from taxes, we are here to help.

You can contact us directly at 888-636-2310 or simply fill out the quote form on the left. We look forward to hearing from you.