Life insurance trust

A life insurance trust is an irrevocable, non-amendable trust which is both the owner and beneficiary of one or more life insurance policies. Upon the death of the insured, the Trustee invests the insurance proceeds and administers the trust for one or more beneficiaries. If the trust owns insurance on the life of a married person, the non-insured spouse and children are often beneficiaries of the insurance trust. If the trust owns "second to die" or survivorship insurance which only pays when both spouses are deceased, only the children would be beneficiaries of the insurance trust.

In the United States, proper ownership of life insurance is important if the insurance proceeds are to escape federal estate taxation. If the policy is owned by the insured, the proceeds will be subject to estate tax. (This assumes that the aggregate value of the estate plus the life insurance is large enough to be subject to estate taxes.) To avoid estate taxation, some insureds name a child, spouse or other beneficiary as the owner of the policy.

Life insurance

Life insurance or life assurance, especially in the Commonwealth, is a contract between an insurance policy holder and an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of money (the benefit) in exchange for a premium, upon the death of an insured person (often the policy holder). Depending on the contract, other events such as terminal illness or critical illness can also trigger payment. The policy holder typically pays a premium, either regularly or as one lump sum. Other expenses (such as funeral expenses) can also be included in the benefits.

Life policies are legal contracts and the terms of the contract describe the limitations of the insured events. Specific exclusions are often written into the contract to limit the liability of the insurer; common examples are claims relating to suicide, fraud, war, riot, and civil commotion.

Life-based contracts tend to fall into two major categories:

Life Insurance 2 (Heart Muzik)

Life Insurance 2 (Heart Muzik) is the 6th studio album released by rapper Mr. Serv-On, on May 27, 2008. It is his sequel to the 1997 album, Life Insurance.

Tracklisting

References

Life Insurance (album)

Life Insurance is the debut album by rapper, Mr. Serv-On. It was released on August 5, 1997 through No Limit Records and was mostly produced by the labels in-house production team, Beats By the Pound, with one track produced by Brotha Lynch Hung. The album was both a commercial and critical success, peaking at #20 on the Billboard 200 and #12 on the Top R&B/Hip-Hop Albums, and is usually considered one of No Limit's best albums.

Track listing