Estate Liquidity

Defining the client's goals and objectives for the coverage — Sound personal insurance planning begins with defining the client's goals and objectives — the financial objectives the life insurance is intended to accomplish, such as income replacement, debt liquidation, estate liquidity, or education funding. Only after goals are identified does the planner gather financial information, analyze needs and exposures, evaluate alternatives, and recommend an appropriate policy. Selecting a product first, or skipping the needs analysis, inverts the process and risks recommending coverage that does not fit the client's actual situation.

National insurance concept

A guaranteed death benefit for a specified period, often to age 100 or 121, with guaranteed premium requirements — Guaranteed universal life (GUL) is a universal life product built around a guarantee: as long as the owner pays the specified minimum premium, the death benefit is guaranteed for a stated period, frequently to age 100 or 121. Cash value accumulation is secondary; the product competes on the certainty of long-term death protection at a relatively low premium. This makes GUL attractive for permanent needs such as estate liquidity.

National insurance concept