Tim Fuller

President, SRS Inc.

Tim Fuller is President of SRS Inc., a full-service IMO (Independent Marketing Organization) and BGA (Brokerage General Agency) that has connected independent financial professionals with life, annuity, disability income, and long-term care solutions from 60+ carrier partners for more than 50 years. Tim and the SRS team specialize in impaired-risk underwriting, advanced case design, and helping advisors place the cases other IMOs turn away.

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Gifting to Fund Life Insurance Premiums: Why the Gift Rules Matter

September 26, 2026November 30, 2021 by Tim Fuller

Advisor and client reviewing an advanced markets estate planning strategy in a private office

It is rarely hard to show clients they need life insurance. Finding the premium dollars is the harder part. Gifting can solve that problem, and understanding the basic gift rules helps you design cases that work for clients and their families.

Key takeaways

Gifts of cash to an adult child or a trust can fund a policy on the giver while keeping the death benefit out of the giver’s taxable estate.
Annual exclusion gifts and the lifetime exemption, now $15 million per person, give most clients ample room to fund premiums.
Gifting can also equalize an estate when some heirs inherit property and others do not.

When the giver dies, the child receives a tax-free death benefit that can replace the support the parent used to provide.

Why advisors need to know the gift rules

Gifting shows up in many advanced markets cases, from ILIT funding to split-dollar and family business planning. It creates opportunities, but it can also create complications, such as unexpected gift tax filings, if a case is structured carelessly. A working knowledge of the rules lets you spot the opportunity and avoid the trap. For a broader overview, see our article on lifetime gifting strategies.

How gifts fund life insurance

The mechanics are simple. A client gives cash to an adult child or to an irrevocable trust. The child or trustee applies for and owns a policy on the client’s life and uses the gifted cash to pay premiums. At the client’s death, the death benefit is paid to the owner-beneficiary income-tax-free and, because the client never owned the policy, it generally stays out of the client’s estate.

Gifts up to the annual exclusion amount per recipient generally require no gift tax return.
Larger gifts use part of the client’s lifetime exemption, which is $15 million per person from 2026 under the One Big Beautiful Bill Act.
Gifts to a trust usually need Crummey withdrawal rights to qualify for the annual exclusion.

Example: equalizing an estate with a gift

A father has three children. Two want to keep real estate that has been in the family for generations. The third, Jill, has no interest in owning it. To keep things fair, the father gives Jill cash each year so she can buy a policy on his life. At his death, the real estate passes to the two children who want it, and Jill receives the death benefit. Because Jill owns the policy, the proceeds stay out of the father’s taxable estate. Our article on estate equalization explores this idea further.

Financial and emotional reasons to give

Some clients give to reduce a future estate tax. Many more give because they want to see their family benefit, help a child with a specific need or make sure support continues after they are gone. Life insurance multiplies the value of those gifts. Contact SRS for help designing gift-funded cases and comparing carriers.

Frequently asked questions

Does a child need an insurable interest to own a policy on a parent?

Yes, and close family members generally have one. The parent must also consent to the coverage and take part in underwriting.

Should the policy be owned by the child or by a trust?

A trust adds control, creditor protection and clear distribution terms, which matter for larger policies or multiple heirs. Direct ownership by an adult child is simpler for smaller cases.

Does paying premiums through gifts require a gift tax return?

Not if the gifts fall within the annual exclusion and qualify as present-interest gifts. Larger gifts, or gifts to trusts without proper withdrawal rights, may require a return.

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Reviewed by Tim Fuller on 2026-09-26

Tim Fuller

President, SRS Inc.

Tim leads SRS Inc., a full-service IMO (Independent Marketing Organization) and BGA (Brokerage General Agency), connecting independent financial professionals with life, annuity, disability income, and long-term care solutions from 60+ carrier partners.

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Critical Illness Insurance: An Overlooked Cross-Selling Opportunity

September 26, 2026November 24, 2021 by Tim Fuller

Advisor supporting a couple as they review living needs benefits paperwork together

Medical advances mean more people survive illnesses that once would have been fatal. Surviving is good news, but living through treatment and recovery can create serious financial strain. Critical illness insurance pays a lump sum on diagnosis, and it is an easy product to add to existing client conversations.

Key takeaways

Critical illness insurance pays a lump sum on diagnosis of a covered condition such as cancer, heart attack or stroke.
Some plans include a return-of-premium death benefit if the insured dies of a non-covered cause.
Clients with a family history of cancer, heart disease or hypertension are often the most receptive.

Health insurance pays the hospital; critical illness insurance helps pay for everything else while a client recovers.

Why health insurance isn’t enough

Traditional health coverage focuses on hospital, physician and pharmacy costs. A serious diagnosis also brings deductibles, coinsurance, childcare, travel for treatment, short-term home health care and lost income. Those bills arrive when the client should be focused on recovering. A disability policy can replace income; see our article on income protection. Critical illness coverage adds cash for the rest.

How critical illness coverage works

The policy pays a tax-free lump sum when the insured is first diagnosed with a covered condition. The client can use the money however they choose. Benefit amounts vary widely, with some carriers offering up to $500,000, and term periods such as 10, 15, 20 or 30 years.

One plan we have worked with pays benefits in three ways:

The full benefit on diagnosis of one of its covered illnesses, which include cognitive impairment and Alzheimer’s disease
The full benefit to the beneficiary if the insured dies from a covered illness
A return of all premiums paid to the beneficiary if the insured dies from another cause

While many critical illness policies reduce benefits at 65, some extend full benefits to 70. Confirm current features and pricing, as they change.

Which clients to approach first

Clients with a family history of cancer, heart disease or hypertension
Clients on high-deductible health plans
Self-employed clients and business owners without group coverage
Existing life and disability clients as an add-on review

Adding it to your practice

Critical illness coverage is simple to explain and often affordable, which makes it a natural follow-up after a life or disability sale. It is also a good complement to the medical expense riders available on some disability policies. Contact our disability team for current plans, quotes and client-approved materials.

Frequently asked questions

Are critical illness benefits taxable?

When the individual pays premiums with after-tax dollars, benefits are generally received tax-free. Employer-paid arrangements can differ, so confirm with a tax advisor.

How is critical illness insurance different from disability insurance?

Disability insurance replaces income over time if the client cannot work. Critical illness insurance pays a lump sum on diagnosis, whether or not the client stops working.

What if the client never gets sick?

With a standard plan, premiums pay for protection only. Some plans include a return-of-premium feature that refunds premiums at death from a non-covered cause, usually at a higher cost.

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Reviewed by Tim Fuller on 2026-09-26

Tim Fuller

President, SRS Inc.

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Transfer-for-Value Risk in Cross-Purchase Buy-Sell Agreements

September 26, 2026November 24, 2021 by Tim Fuller

A cross-purchase buy-sell funded with life insurance can be inexpensive to set up and fund. But when there are three or more owners, the first death can move policy ownership in a way that exposes the survivors to transfer-for-value tax on the next death benefit.

Key takeaways

When jointly owned buy-sell policies change hands after an owner’s death, the transfer can violate the transfer-for-value rule.
A violation can make part of the death benefit taxable income to the new owner.
A planned ownership reset after the first death, reviewed by a tax advisor, can often solve the problem at lower cost than restructuring up front.

The shift in policy ownership caused by the first death is probably a transfer for value, and a large part of the next death benefit could become taxable.

How the problem arises

Consider three young, healthy owners, Sharon, Caroline and Andrea, who run an LLC taxed as an S corporation. They agree to buy out any owner’s estate for $1,000,000, and each is insured for that amount. The two non-insured owners jointly own each policy. Sharon and Caroline, for example, own the policy on Andrea.

If Andrea dies, her policy funds the purchase of her interest. But her share of the two remaining policies passes to the survivors, so Sharon becomes sole owner of the policy on Caroline and vice versa. That change in ownership for value is likely a transfer for value, which can cause the death benefit, less the new owner’s basis, to become taxable income.

The exceptions and why they may not help here

Transfers to the insured, to a partner of the insured, to a partnership in which the insured is a partner or to a corporation in which the insured is a shareholder or officer are exceptions. The most common fix is a partner-to-partner transfer. But these owners are taxed as an S corporation, and co-shareholders are not an exception. Converting to partnership taxation, or forming a separate partnership just to hold the policies, may cost far more than the annual premium, all to prevent a tax that only arises if a second death occurs while they are still in business.

A practical approach: plan the reset

A reasonable approach is to document, with the client’s tax advisor, a plan to reset ownership if a first death occurs:

Transfer each remaining policy back to its insured, an exception that also cleanses the policy of prior transfer-for-value taint.
Form a partnership between the surviving owners, incurring the cost only when it is actually needed.
Have the owners exchange policies so each owns the policy on the other, now protected by the partner exception.

Put the recommendation in writing for the client and their tax advisor, and keep a copy in your file to show the issue was raised. Our article on cross-purchase buy-sell agreements covers the broader design.

What about entity redemption?

Having the business own the policies avoids multiple cross-owned contracts. After Connelly v. United States (2024), however, company-owned life insurance used to redeem a deceased owner’s shares can increase the company’s value for estate tax purposes. Each structure has trade-offs, and SRS can help you and the client’s advisors compare them.

Frequently asked questions

What is the transfer-for-value rule?

If a life insurance policy is transferred for valuable consideration, the death benefit can become taxable income to the new owner, less what they paid and later premiums, unless an exception applies.

Are S corporation shareholders covered by the partner exception?

No. Co-shareholders are not an exception. A transfer to the corporation itself, or to the insured, can qualify.

Does a trusteed cross-purchase avoid the issue?

It can simplify ownership with many owners, but the trust arrangement must be carefully drafted. The client’s attorney should review how transfers are handled after a death.

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Reviewed by Tim Fuller on 2026-09-26

Tim Fuller

President, SRS Inc.

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Social Security Maximization: Turning Unneeded Benefits Into a Legacy

September 26, 2026November 24, 2021 by Tim Fuller

Some affluent clients at or near retirement collect Social Security benefits they do not need to live on. Instead of letting those payments pile up in a checking account, they can redirect them into life insurance and turn a modest income stream into a meaningful legacy.

Key takeaways

Unneeded Social Security income can be gifted to an ILIT to pay premiums on survivorship or single-life coverage.
In one case, a couple’s net Social Security income of about $14,000 a year funded a survivorship policy of roughly $973,000.
The strategy works best for insurable clients whose retirement income is already covered by other sources.

A couple netting about $14,000 a year in Social Security they didn’t need used it to fund nearly $1 million of survivorship coverage for their heirs.

Who this strategy fits

Clients at or past Social Security claiming age with other income sources covering their lifestyle
Couples who want to leave more to children or grandchildren
Clients in reasonable health who can qualify for competitive rates
Families interested in a trust-based legacy plan

It often pairs well with other income clients do not need, such as required minimum distributions. See our article on using RMDs in life insurance sales.

Case study: a couple redirects $14,000 a year

A 69-year-old man and his 65-year-old wife were receiving a combined $24,000 a year from Social Security that they did not need. After taxes, they were netting about $14,000.

After meeting with their advisor, they chose to gift $14,000 a year to an irrevocable life insurance trust. The trust purchased a survivorship universal life policy with a death benefit of about $973,000, payable to the trust for their children and grandchildren.

Premiums and death benefits depend on ages, health, product and current pricing, so any new case should be illustrated with today’s rates.

How the structure works

The clients continue collecting Social Security as usual.
Each year they gift the net amount to an ILIT, typically within annual exclusion limits.
The trustee pays the policy premium.
At the second death, the trust receives the death benefit income-tax-free and distributes it under the trust terms.

Survivorship coverage is often a cost-effective choice for married couples because it insures two lives and pays at the second death. For more on gift planning, see our article on lifetime gifting.

Presenting the choice to clients

For many clients the decision is simple: let unneeded income sit, or use it to build a lasting legacy. Our case design team can run survivorship and single-life illustrations so you can show clients exactly what their benefit could buy.

Frequently asked questions

Is Social Security income taxable?

Up to 85% of benefits can be subject to federal income tax depending on the client’s other income. The strategy typically uses the after-tax amount to fund premiums.

Why use survivorship life insurance?

It insures two people and pays at the second death, which often lines up with when an estate passes to heirs. It is usually less expensive than two separate policies.

Does the policy have to be owned by an ILIT?

No, but a trust keeps the death benefit out of the taxable estate and lets the clients set terms for how heirs receive the money.

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Reviewed by Tim Fuller on 2026-09-26

Tim Fuller

President, SRS Inc.

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Long-Term Care Awareness Month: A Guide for Advisors and Families

September 25, 2026November 24, 2021 by Tim Fuller

November is Long-Term Care Awareness Month, a good reminder for families to talk about something most would rather avoid: what happens if someone needs extended care, and how it would be paid for.

Key takeaways

Close to 70% of people turning 65 will need some form of long-term care.
Health insurance and Medicare don’t pay for most extended custodial care.
In 2025, a private nursing home room cost a national median of about $130,000 a year, and assisted living about $74,400.

A private nursing home room now costs a national median of about $130,000 a year. Most families have never planned for that.

The key facts

Close to 70% of people turning 65 will need some type of long-term care services.
Many people assume health insurance or Medicare will pay. Neither covers most extended custodial care.
National median costs in 2025: about $74,400 a year for assisted living and about $130,000 a year for a private nursing home room (CareScout 2025 Cost of Care Survey). More in our 2025 cost of care summary.

What’s at stake

A few years of care can drain a lifetime of retirement savings. The emotional and physical strain on family caregivers can be just as heavy. Long-term care insurance protects retirement assets and helps ensure a loved one is cared for in the setting they prefer.

Why buying earlier helps

Premiums are lower, and qualifying is easier, when clients buy younger and healthier. Traditional LTC premiums aren’t guaranteed and can rise if the carrier raises rates for an entire class of policyholders, while many hybrid products offer guaranteed premiums. Either way, the cost of coverage is usually far less than paying for care out of pocket.

Use the month to start conversations

Awareness month gives advisors a natural reason to reach out. Try eight ways to ease into the talk, and contact our LTC team for design help.

Frequently asked questions

When is Long-Term Care Awareness Month?

November.

What are the chances of needing long-term care?

Close to 70% of people turning 65 will need some type of long-term care services during their lives.

Can long-term care insurance premiums increase?

Traditional LTC premiums can increase if the carrier raises rates for an entire class of policies. Many hybrid policies have guaranteed premiums.

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Reviewed by Tim Fuller on 2026-09-25

Tim Fuller

President, SRS Inc.

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Structuring Buy-Sell Life Insurance: Avoiding Too Many Policies in a Cross-Purchase

September 25, 2026November 16, 2021 by Tim Fuller

Many small and mid-sized businesses have no written plan for what happens if an owner retires, becomes disabled, or dies. Those that do often face a practical problem when funding a cross-purchase buy-sell with life insurance: the number of policies multiplies fast.

Key takeaways

Cross-purchase agreements give surviving owners a basis increase equal to the price they pay, which entity redemptions don’t.
With more owners, policies multiply: three owners need 6 policies, four need 12.
Partnerships can use one policy per owner held jointly by the other partners; other entities often use a separate LLC or partnership to hold the policies.

Three owners, six policies. Four owners, twelve. A cross-purchase gets complicated fast without the right structure.

Why a written agreement matters

Without a written buy-sell agreement, owners don’t know who their partner will be tomorrow, whether that’s a deceased partner’s heirs or a competitor who bought out a co-owner. Oral understandings rarely hold up.

Why cross-purchase is often preferred

In a cross-purchase, owners buy each other’s interests directly, so the surviving owners’ income tax basis increases by the full purchase price. The 2024 Supreme Court decision in Connelly v. United States added another reason: when a corporation owns life insurance to redeem a deceased owner’s shares, the proceeds can increase the company’s value for estate tax purposes. See buy-sell agreements and transition planning.

The problem: too many policies

Each owner must own insurance on every other owner, so the number of policies is n × (n − 1). Two owners need two policies; three need six; four need twelve.

Solutions

Partnerships and LLCs taxed as partnerships: buy one policy per owner, held by the other owners jointly with right of survivorship. When an owner dies, rights reallocate among survivors, and because they’re partners, the transfer-for-value partner exception generally applies.
Corporations or when personal ownership is uncomfortable: hold the policies in a separate LLC or partnership created for that purpose, or use a trusteed cross-purchase.

Any structure only works if everyone follows through: the estate sells, and the survivors use the proceeds to buy. Coordinate with the clients’ attorney and tax advisor.

Frequently asked questions

How many policies does a cross-purchase buy-sell need?

n × (n − 1), where n is the number of owners. Three owners need six policies; four need twelve.

How did Connelly v. United States affect buy-sell agreements?

The 2024 decision held that corporate-owned life insurance used for a redemption can increase the company’s value for estate tax, making cross-purchase structures more attractive.

Can a partnership avoid multiple buy-sell policies?

Yes. Partners can hold one policy per owner jointly with right of survivorship, generally within the transfer-for-value partner exception.

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Reviewed by Tim Fuller on 2026-09-25

Tim Fuller

President, SRS Inc.

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Income Settlement Options: Paying a Death Benefit Over Time

September 26, 2026November 15, 2021 by Tim Fuller

A life insurance death benefit can put more money in a beneficiary’s hands at once than they have ever had. For clients who worry about how that money will be spent, some carriers offer an income provider option that pays the death benefit as a guaranteed stream of income instead.

Key takeaways

An income provider option lets the policy owner choose a guaranteed monthly or annual income for beneficiaries instead of a single lump sum.
Because the carrier pays out over time, some carriers offer premium discounts based on the length of the income period.
A partial lump sum option can pay part of the benefit up front for immediate expenses and the rest as income.

Choosing an income stream lets clients control how the death benefit is used, and with some carriers it can also reduce the premium.

The concern behind the lump sum

Clients often ask whether their children are ready to manage a large sum, whether a spouse will be pressured by others or whether the money will be spent the way they intended. Those are fair questions, and a standard lump-sum payout does not answer them.

How an income provider option works

With this option, available from select carriers as a policy endorsement, the owner elects to have the death benefit paid as a guaranteed annual or monthly income to one or more beneficiaries over a chosen period. Key features in the designs we have seen:

The owner decides the payout schedule in advance.
The owner can generally change the election while the policy is in force.
Once the insured dies, the income stream pays as elected.
Graded premium discounts may apply based on how long the income stream lasts.

Features and availability vary, so confirm details with the carrier before presenting.

The partial lump sum option

Some designs pay a portion of the death benefit, such as half, as a lump sum with the remainder paid as income. The lump sum can cover funeral costs, probate expenses and other immediate needs after a sudden death, while the income stream provides ongoing support.

Comparing it with a trust

An income option is simpler and cheaper to set up than a trust, but it is less flexible. A trust can respond to changing needs, provide for education or health expenses and protect assets from creditors. For larger estates, consider coordinating the policy with a trust-based plan. For sizing the benefit itself, see our guide to income multiples.

Contact our life team to find carriers currently offering income settlement options and to illustrate the premium impact.

Frequently asked questions

Is income from a death benefit settlement option taxable?

The death benefit portion is generally income-tax-free, but interest credited on proceeds held by the carrier is usually taxable to the beneficiary.

Can the income schedule be changed after the insured dies?

Typically no. The owner can change the election while the policy is in force, but once the insured dies, payments follow the elected schedule.

Does choosing an income option really lower the premium?

With some carriers, yes. Graded discounts may apply based on the length of the payout period. Not all carriers offer this, so compare illustrations.

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Reviewed by Tim Fuller on 2026-09-26

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President, SRS Inc.

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Disability Insurance Discounts for 1099 Contractors and Small Groups

September 25, 2026November 10, 2021 by Tim Fuller

Multi-life disability discounts usually require full-time W-2 employees under a sponsoring employer. That leaves out independent contractors. An affinity business discount changes that.

Key takeaways

Traditional multi-life discounts generally require W-2 employees of a sponsoring employer.
An affinity business discount at one carrier lets groups of three or more employees and/or 1099 contractors qualify without employer sponsorship.
Accountants, agents, IT professionals, real estate agents, and consultants are strong prospects.

Three or more people applying together — employees, 1099 contractors, or both — may qualify for a discount with no employer sponsorship.

Who’s eligible

Under one carrier’s business affinity discount guidelines, groups of three or more individuals applying at the same time may qualify if they are:

Employees and/or 1099 contractors working with a common employer or business, or
Members of a local professional employer organization (PEO)

Applicants generally need to be issue ages 18–70 and in occupation class 3A or better. Terms vary by carrier and state.

Prospects to target

Accounting firms
Independent insurance agents within an agency
IT professionals
Real estate agents in a brokerage
Consulting groups

Why it matters

Contractors typically have no employer disability coverage at all, so the need is real and the discount makes coverage more affordable. For more ways to find DI prospects in your book, see the easiest disability sale.

Frequently asked questions

Can 1099 contractors get a disability insurance discount?

Some carriers offer affinity discounts for groups of three or more that include 1099 contractors, without employer sponsorship.

How many people are needed for a DI group discount?

Often three or more applying at the same time, depending on the carrier.

Do independent contractors need disability insurance?

Usually more than employees, since they typically have no employer-provided disability coverage.

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Reviewed by Tim Fuller on 2026-09-25

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President, SRS Inc.

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Key Person Insurance for Sales Leaders and Rainmakers

September 26, 2026November 9, 2021 by Tim Fuller

In many businesses, a small number of people bring in a large share of the revenue. When a top salesperson, rainmaker or influential advisor to the company dies, the loss can hit the income statement immediately. Key person insurance on these people protects the business while it replaces relationships that took years to build.

Key takeaways

Rainmakers and sales leaders are often more financially important than their title suggests, because revenue follows their relationships.
Carriers typically justify key person coverage using a multiple of compensation, supported by evidence of the person’s contribution to revenue.
Even non-employee directors can sometimes qualify for modest coverage when their economic impact is well documented.

When a rainmaker dies, the business loses more than an employee; it loses the relationships that drive its revenue.

Why rainmakers deserve their own analysis

A sales leader’s value is tied to client relationships, referral networks and team leadership. Losing that person can mean lost accounts, delayed deals and the cost of recruiting and training a replacement, often at higher pay. Owners tend to insure themselves first and overlook the people who actually drive sales. For the basics, see our article on key person coverage.

Justifying the amount

Carriers commonly look at a multiple of total compensation, often up to about ten times, as a starting point. For rainmakers, a strong case adds:

The share of revenue or gross profit tied to the person’s book of business
Commission and bonus history, not just base salary
Estimated cost and time to recruit and ramp up a replacement
A cover letter explaining the person’s role and impact

A clear story matters. Our article on writing underwriting cover letters shows how to present it.

An unusual case: outside directors

Sometimes a company’s most important signal-caller is not on the payroll. A board member or outside advisor may shape strategy, open doors or lend industry credibility. Carriers do not traditionally recognize these people for key person purposes because they are not employees and have little or no compensation to apply a multiple to.

In one case, however, our team helped a carrier consider modest coverage of $250,000 on directors. Their contributions to the company were well documented, they received meaningful compensation ($2,000 a year plus $1,000 per meeting) and the company was also insuring its traditional key people under standard guidelines. That small success also opened the door to personal planning for two of the key people.

Structuring and compliance

The business applies for, owns and is beneficiary of the policy.
For employer-owned coverage, satisfy Section 101(j) notice and consent requirements before issue so the death benefit remains income-tax-free, and file Form 8925 annually.
Revisit coverage as the person’s production and compensation change.

Contact SRS to discuss key person cases, especially those outside common guidelines.

Frequently asked questions

How much key person insurance can a business buy on a salesperson?

Carriers often use a multiple of total compensation, commonly up to about ten times, supported by evidence of the person’s contribution to revenue. Each carrier has its own guidelines.

Can a company insure a director who isn’t an employee?

Sometimes. Carriers are cautious, but modest amounts may be possible when the director is compensated and their economic value is well documented.

Is key person insurance tax-deductible?

Premiums are generally not deductible when the business is the beneficiary. The death benefit is generally income-tax-free if Section 101(j) requirements are met.

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Reviewed by Tim Fuller on 2026-09-26

Tim Fuller

President, SRS Inc.

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Upgrade Programs in Life Underwriting: One-Class and One-Table Improvements

September 25, 2026November 5, 2021 by Tim Fuller

Sometimes a single factor, like a slightly high cholesterol reading, keeps an otherwise healthy client out of the best rate class. Some carriers have programs designed to fix exactly that.

Key takeaways

One carrier offers a one-class upgrade when only one of build, cholesterol, blood pressure, or family history holds a client back.
A one-table reduction program can improve substandard offers, for example from Table B to Standard, through age 70.
Some carriers also treat occasional pipe or cigar use and recreational scuba diving more favorably than others.

A one-table reduction can turn a Table B offer into Standard — on both term and permanent products, through age 70.

The one-class upgrade

One of our carriers allows a one-class upgrade when the less favorable class is caused by just one of four factors: build, cholesterol, blood pressure, or family history. If the other three all meet the better class’s guidelines, the upgrade applies. It’s available on term and permanent products, up to age 70, and includes smoker classes.

Example: a 60-year-old male whose build puts him in Preferred, but whose blood pressure, cholesterol, and family history all meet Preferred Best guidelines, is improved to Preferred Best. Family history is a common culprit; here’s how family history of cancer is handled.

The one-table reduction

For substandard cases, the same carrier offers a one-table improvement through age 70 on term and permanent products. A Table B offer, for example, becomes Standard.

Other underwriting strengths

Pipe and cigar use: occasional use (no more than once a month) with a negative nicotine test may be considered for Preferred non-tobacco rates.
Scuba diving: may be considered for Preferred Best for resort diving to 35 feet and up to 6 dives a year, or certified divers to 75 feet using the buddy system and up to 10 dives a year.

Carrier programs change, so confirm current availability with our team before quoting.

Frequently asked questions

What is a one-class underwriting upgrade?

A carrier program that moves a client up one rate class when only one factor, such as build or cholesterol, keeps them from the better class and everything else qualifies.

Can a table rating be improved?

Some carriers offer a one-table reduction program that improves substandard offers by one table, for example from Table B to Standard.

Can occasional cigar smokers get non-tobacco rates?

Some carriers allow Preferred non-tobacco rates for occasional cigar or pipe use, typically no more than once a month with a negative nicotine test.

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Reviewed by Tim Fuller on 2026-09-25

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Gifting to Fund Life Insurance Premiums: Why the Gift Rules Matter

Why advisors need to know the gift rules

How gifts fund life insurance

Example: equalizing an estate with a gift

Financial and emotional reasons to give

Frequently asked questions

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Why health insurance isn’t enough

How critical illness coverage works

Which clients to approach first

Adding it to your practice

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