IUL Insurance in Marco Island, FL

Not too old, but the structure has to be precise. At 65 and 67, single-life IUL is increasingly expensive — cost-of-insurance scales with age, and the policy is buying coverage with limited compounding runway. Survivorship IUL solves this: one policy, two insureds, pays at the second death. Mortality math on the joint life is materially more favorable than on either individual, which means the cost-of-insurance is meaningfully lower than two single-life policies. For a $4M estate that's currently under the federal exemption but exposed to scheduled exemption reduction in 2026-2027, an ILIT-owned survivorship IUL produces tax-free liquidity at the second death that the estate plan can use to pay any tax bill without forcing the heirs to liquidate Marco real estate. Underwriting still applies — both insureds have to qualify — and AG 49-A illustration discipline is non-negotiable at this age.

Yes, under IRC §101(a) — life insurance death benefits are received by beneficiaries free of federal income tax. That's structural, not a planning trick. What's not automatic: the death benefit can still be subject to federal estate tax if the policy is owned by the insured at death (which is why higher-net-worth Marco households often use an ILIT to own the policy outside the gross estate). The income-tax-free treatment is the same either way; the estate-tax treatment depends on ownership. Florida has no state estate or inheritance tax, so the federal level is the only tax exposure. For estates under the current federal exemption ($15M per individual in 2026, or $30M married with portability planning), the ILIT structure is usually unnecessary — but some Marco couples still use ILITs for large death benefits, creditor protection, or beneficiary-control planning.

Three stress tests, every illustration. First, the AG 49-A required illustration uses a constrained maximum illustrated rate based on the policy's loan structure and historical index lookback — that's the regulatory ceiling. Second, the guaranteed-minimum scenario shows what happens if every non-guaranteed assumption goes to its contractual worst case (caps drop to minimum, no bonuses ever paid, dividend assumption zeroed out). Third, we run a stochastic simulation across historical S&P 500 sequences to show the distribution of outcomes — best case, median, worst case. For a Marco couple with a $4M estate, the right number to plan around is the 25th-percentile outcome, not the median or the AG 49-A illustrated rate. If the policy's economics still work for your estate plan at the 25th percentile, the policy is honest. If it only works at the median or above, the illustration is too aggressive.