As you may already be aware, there will be a massive reduction in the amount of a High Net Worth client’s ‘death benefit coverage’ as a direct result of OBBBA’s estate tax repeal.

While there should be much thought given as to how to best maximize the benefit, the Life Insurer is already contractually obligated to provide to the insured, that’s not usually the case. Although there are many options & strategies to consider before a decision is made to repurpose the focus of a client’s life Insurance portfolio from death benefit to living benefit, many clients will just take the easiest way out by simply surrendering their policy back to the Insurance company that originally issued the policy.

My latest Bloomberg article (seen below) will provide you with some additional background information on this topic.