TABLE OF CONTENTS

Dedication............................................................................................................................................................................................. iii

Acknowledgement............................................................................................................................................................................... v

About the Authors............................................................................................................................................................................ vii

Preface to the Fourth Edition............................................................................................................................................................. ix

Guidelines for the Professional.......................................................................................................................................................... xi

PART I TOOLS

Chapter 1           Introduction to Life Insurance............................................................................................................................... 1

Chapter 2           How to Estimate the Insurance Need.................................................................................................................. 19

Chapter 3           How to Determine the Right Company............................................................................................................... 49

Chapter 4           How to Determine the Right Policy..................................................................................................................... 71

Chapter 5           Legal Aspects of Life Insurance.......................................................................................................................... 91

Chapter 6           Special Policy Provisions and Riders................................................................................................................ 121

Chapter 7           Adjustable Life..................................................................................................................................................... 131

Chapter 8           Annuities............................................................................................................................................................... 141

Chapter 9           Current-Assumption Whole Life....................................................................................................................... 169

Chapter 10        Group Life Insurance........................................................................................................................................... 181

Chapter 11        Joint Life (First-to-Die) Insurance..................................................................................................................... 195

Chapter 12        Limited-Pay Whole Life Insurance.................................................................................................................... 201

Chapter 13        Ordinary Level-Premium Whole Life Insurance.............................................................................................. 213

Chapter 14        Single Premium Life Insurance........................................................................................................................... 225

Chapter 15        Survivorship Life.................................................................................................................................................. 237

Chapter 16        Term Insurance..................................................................................................................................................... 251

Chapter 17        Universal Life........................................................................................................................................................ 265

Chapter 18        Variable and Variable Universal Life................................................................................................................. 281

PART II TECHNIQUES

Chapter 19        Modified Endowment Contracts........................................................................................................................ 297

Chapter 20        Section 1035 Exchanges...................................................................................................................................... 305

Chapter 21        Taxation of Benefits............................................................................................................................................. 315

Chapter 22        The Transfer for Value Rule............................................................................................................................... 329

Chapter 23        Estate Taxation of Life Insurance...................................................................................................................... 343

Chapter 24        Gift Taxation of Life Insurance........................................................................................................................... 367

Chapter 25        Life Insurance and the Generation-Skipping Transfer Tax............................................................................ 375

Chapter 26        Accelerated Death Benefits and Viatical Settlements.................................................................................... 383

Chapter 27        Buy-Sell Agreements........................................................................................................................................... 395

Chapter 28        Charitable Use of Life Insurance....................................................................................................................... 407

Chapter 29        Death Benefit Only (DBO) Plans....................................................................................................................... 427

Chapter 30        Irrevocable Life Insurance Trusts..................................................................................................................... 439

Chapter 31        Key Employee Life Insurance............................................................................................................................ 471

Chapter 32        Life Insurance in Qualified Plans....................................................................................................................... 481

Chapter 33        Nonqualified Deferred Compensation.............................................................................................................. 493

Chapter 34        Pension Maximization.......................................................................................................................................... 517

Chapter 35        Revocable Life Insurance Trusts....................................................................................................................... 529

Chapter 36        Section 162 Plans................................................................................................................................................. 541

Chapter 37        Split Dollar Life Insurance.................................................................................................................................. 545

APPENDICES

Appendix A        Tax Tables............................................................................................................................................................. 559

Appendix B        Accounting for Life Insurance........................................................................................................................... 563

Glossary............................................................................................................................................................................................. 573

Index................................................................................................................................................................................................... 595