Life insurance for your heirs

Who benefits from SPL?

Who might benefit most from an SPL? Hasenauer says it is best suited for those who want to set aside for the next generation a large sum they'll never need themselves.

"If you have a need for the insurance to fund a trust for heirs or a special-needs grandchild who will require lifetime income, this is the perfect investment for that," she says. "You just put it aside, you know it's there and it's going to build rapidly."

Al Barnes, a life insurance specialist based in Alabama, says applicants age 55 and under with a 30-year time horizon have the best chance of maximizing an SPL. "Someone who is 75, who's looking at maybe a 12-year time horizon, they'll probably want guaranteed universal life to get the biggest bang for their buck," he says.

But because of the complexities of estate planning with life insurance products, especially one that involves parting with a hefty chunk of cash, he recommends finding a crack financial planner first.

"(SPL) gives you a respectable death benefit with that money, therefore it has a use," he says. "Now, should that be your use? That's where you need advice from somebody who is not selling it to you."


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