What Does Trust-Owned Life Insurance Mean?

The product refers to a certain type of life insurance whose essence resides in safe-keeping or the so-called ‘trust’. The product is abbreviated as TOLI, and is mainly used by high net-worth people as a basic element of their property schemes. With a trust-owned life insurance, insured people can be sure their survivors will be safe, the tax liabilities for their property will be covered, as well as their heirs will get a balanced inheritance. Moreover, one can even opt for supporting charitable duties.

Trust-Owned Life Insurance Explained

One should think of a life insurance product as a long-term guarantee which is preferably not used according to its real purposes for a long period of time.

However, there is a conventional practice according to which such insurances are overlooked, but this is not good at all. One is strongly recommended to review a trust-owned insurance contract periodically as often happens that a current contract does not suit the trust’s current needs. Similarly, renewing a contract or changing some of its terms and conditions often lead to lower costs and better policy-features.