Eldrick is a successful businessperson, age 58, with vast and diverse holdings worth nearly $20 million....

 

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Eldrick is a successful businessperson, age 58, with vast and diverse holdings worth nearly $20 million. His accountant estimates that he will owe about $6 million in taxes, fees and other expenses at the time of his death. In order to preserve his estate for the benefit of his heirs Eldrick has decided to take out term to 100 life insurance to cover the full liability. The company that he has applied to is a medium- sized insurer with a maximum retention limit of $5 million of coverage on any one life insured. How will the company respond to Eldrick's application, assuming that he is in good health? Eldrick is a successful businessperson, age 58, with vast and diverse holdings worth nearly $20 million. His accountant estimates that he will owe about $6 million in taxes, fees and other expenses at the time of his death. In order to preserve his estate for the benefit of his heirs Eldrick has decided to take out term to 100 life insurance to cover the full liability. The company that he has applied to is a medium- sized insurer with a maximum retention limit of $5 million of coverage on any one life insured. How will the company respond to Eldrick's application, assuming that he is in good health?

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Based on the information provided Eldricks accountant estimates that he will owe about 6 million in ... View the full answer