For clients concerned about estate tax uncertainty, American United Life Insurance Co. (AUL) has added a survivor purchase option to its whole life policies.

AUL’s survivor purchase option gives the surviving policy beneficiary (usually a surviving spouse) the option to receive a cash death benefit or apply part or all of the death benefit toward the purchase of insurance on the insured beneficiary (e.g., the surviving spouse). The death benefit from this new policy can then be used to fund any anticipated estate tax needs when the second spouse dies. The underwriting and cost of the new policy is based on the insured beneficiary’s health at the time of the initial policy purchase.

The survivor purchase option can also be used in business continuity situations, where a CEO could be the base insured and the COO the insured beneficiary. Upon the death of the CEO, the business could use the death benefit for current business needs or to fund life insurance on the COO.

“For customers with estate tax concerns, the survivor purchase option offers an innovative approach that could help address their estate liquidity needs now or in the future,” said Mark Wilkerson, AUL’s senior vice president of individual operation. “With continued uncertainty around the long-term future of federal estates taxes, we feel many customers will be looking for the sort of flexibility the survivor purchase option presents.”

The survivor purchase option is available on AUL’s Legacy, Legacy 121 and Liberty Select whole life policies. To learn more, contact an AUL professional at http://www.oneamerica.com/wps/wcm/connect/oa/aul/contact+us/find+aul+professional.