AUL now offering survivor purchase option

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.