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.

Life InsuranceImpaired RiskLong-Term CareDisability IncomeAdvanced MarketsUnderwriting

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Convertible Term to Survivorship: An Affordable Estate Planning Bridge for Hesitant Clients

September 25, 2026February 14, 2022 by Tim Fuller

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

Some affluent clients see the need for estate liquidity but hesitate to commit to a survivorship policy. Uncertainty about markets, taxes or family circumstances keeps them on the sidelines. Convertible term that can later convert to survivorship life offers a lower-cost way to lock in protection now.

Key takeaways

Some carriers allow individual term policies on each spouse to be converted into a survivorship (second-to-die) policy during the conversion period.
Clients get immediate protection and lock in their underwriting class, with a smaller premium commitment than permanent coverage.
ILIT ownership works, but structure matters: covering each spouse for half the need can avoid new evidence of insurability at conversion.

Your clients receive immediate protection while locking in their underwriting class — with far less coming out of the checkbook today.

Why clients hesitate on survivorship life

Survivorship life is often the most efficient way to provide estate liquidity for a married couple, but it’s a long-term, permanent commitment. With the federal estate tax exemption now at $15 million per person ($30 million per couple) under the One Big Beautiful Bill Act, some clients are unsure whether they’ll have a taxable estate at all, while others face state estate taxes or business and illiquidity issues that still require planning.

For clients taking a wait-and-see approach, doing nothing risks losing insurability. Convertible term offers a middle path. See what the $15 million exemption means for your clients for context.

How the conversion strategy works

Certain carriers allow individual term policies to be converted into a survivorship universal life policy during the designated conversion period. The couple buys term now, satisfying the total insurance need at a much lower premium, and retains the right to convert to survivorship coverage at attained age later — without new medical underwriting for the insured lives, subject to the carrier’s rules.

Conversion privileges, eligible products and deadlines vary significantly by carrier, so confirm current availability before recommending the strategy.

Owning the term policies in an ILIT

The policies can be owned individually or by an irrevocable life insurance trust. If a trust is used, keep two points in mind:

If only one spouse is covered by the term policy, the other spouse will generally need to provide evidence of insurability when the policy converts to survivorship coverage.
Having the trust buy half of the total need on each spouse allows the couple to reach the full survivorship amount at conversion without new proof of insurability.

Putting it to work

This approach is a good fit for couples who recognize an estate liquidity need but aren’t ready to commit, those whose estate tax exposure is uncertain, and those who want to lock in health class while it’s favorable. Our team can identify which carriers’ term policies qualify for survivorship conversion and prepare quotes showing the most affordable options.

Frequently asked questions

Can term life insurance be converted to survivorship life?

Some carriers allow individual term policies on each spouse to convert into a survivorship universal life policy during the conversion period. Not all carriers or products offer this, so confirm availability.

Does converting term to survivorship require a new medical exam?

Typically not for the insureds already covered by the term policies, within the carrier’s conversion rules. A spouse not covered by term may need to show evidence of insurability.

Can an ILIT own the convertible term policies?

Yes. A trust can own the policies. Buying half of the total need on each spouse can let the trust convert to the full survivorship amount without new underwriting.

50+ Years in Business60+ Top-Rated Carriers★★★★★ Rated by Advisors

Reviewed by Tim Fuller on 2026-09-25

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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Case Placement: Standard Rates After Hepatitis C and Two Carrier Setbacks

September 25, 2026February 11, 2022 by Tim Fuller

Underwriter reviewing medical and financial data with a client during risk assessment

The same impaired-risk case can get wildly different answers from different carriers. This Hepatitis C file went from a decline to Standard, and the only thing that changed was where it was submitted.

Key takeaways

Underwriting for Hepatitis C depends heavily on liver damage (fibrosis stage) and whether treatment achieved a cure.
Sustained virologic response (SVR) after treatment and normal liver function are the strongest positives in the file.
Four carriers produced four outcomes on the same case: decline, Table E, Table B, and Standard Non-Tobacco.

Same client, same file, four carriers: a decline, Table E, Table B — and Standard Non-Tobacco.

The case

58-year-old male seeking $1 million of term coverage
Non-smoker, 5’11” and 230 lbs; takes medication for cholesterol and blood pressure
Diagnosed with Hepatitis C in his late teens from a contaminated blood transfusion
Liver biopsy showed stage 2 fibrosis, no cirrhosis
Curative treatment with Harvoni in 2015; post-treatment testing showed sustained virologic response
Current liver function tests normal

The results, carrier by carrier

Carrier 1: declined
Carrier 2: tentative Table E Non-Tobacco
Carrier 3: Table B Non-Tobacco, even with its credit program
Carrier 4: Standard Non-Tobacco

What made the difference

Modern Hepatitis C treatments can cure the infection, but carriers haven’t all updated their guidelines at the same pace. Some still weight the original diagnosis heavily; others focus on the cure and current liver health. Knowing which carriers take the second view is what turned this case around. It’s the same pattern we saw in a case that was declined three times before a Standard offer.

How to present a Hepatitis C case

Include treatment dates, the medication used, post-treatment viral load results showing SVR, the most recent liver function tests, and any biopsy or imaging on fibrosis. Send the details to our Underwriting Team first so the case goes to the right carrier the first time.

Frequently asked questions

Can someone with a history of Hepatitis C get life insurance?

Yes. Clients who have been cured, with sustained virologic response and normal liver function, can qualify for Standard or better with the right carrier.

What is sustained virologic response (SVR)?

SVR means the virus is undetectable in the blood months after treatment ends. It’s considered a cure and is the most important positive in a Hepatitis C file.

Why did carriers disagree so much on this case?

Carriers update impairment guidelines at different speeds. Some still rate the original diagnosis heavily, while others focus on the cure and current liver health.

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Reviewed by Tim Fuller on 2026-09-25

Tim Fuller

President, SRS Inc.

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Multi-Life Long-Term Care Sales: Finding Prospects in Your Existing Book

September 25, 2026February 10, 2022 by Tim Fuller

The hardest part of most sales is finding the prospect. For multi-life long-term care, your best prospects may already be in your client files.

Key takeaways

Business owners, professionals, and executives are natural gateways to multi-life LTC sales.
Multi-life cases may qualify for discounts and underwriting concessions not available individually.
Employer-paid premiums are often deductible, and carve-out plans are generally not subject to ERISA.

One business-owner client can open the door to five, ten, or more long-term care policies.

Hidden multi-life triggers in your book

Look for clients who:

Own a business or work in a profession such as law, medicine, accounting, or consulting
Hold a senior role or influence benefits decisions
Run a growing business that wants to offer more benefits
Could use the tax advantages of buying LTC with company dollars
Have employees who could benefit from group discounts and underwriting concessions

Organizations willing to pay some or all premiums for five or more lives are often the strongest prospects.

What’s in it for the business and employees

Carve-out plans are generally not subject to ERISA
Employer-paid premiums are often deductible as a business expense
Possible multi-life discounts and simplified underwriting
Unisex pricing may be available in some multi-life programs

Starting the conversation

Start with the owner’s own coverage, then ask about key employees. The tax angle often opens the door; see how LTC insurance provides tax advantages. Our LTC team can help you structure a multi-life proposal.

Frequently asked questions

What is multi-life long-term care insurance?

LTC coverage sold to several people through the same employer or organization, often with discounts and simplified underwriting.

How many lives are needed for a multi-life LTC discount?

It varies by carrier, but many programs start at three to five lives.

Can a business deduct long-term care premiums for employees?

Employer-paid premiums are often deductible as a business expense; C-corporations generally get the most favorable treatment.

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Reviewed by Tim Fuller on 2026-09-25

Tim Fuller

President, SRS Inc.

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Business Disability Solutions: Key Person Replacement, Business Loan Protection, and Health Benefit Riders

September 25, 2026February 9, 2022 by Tim Fuller

Business owners protect buildings, equipment, and inventory. Fewer protect against the disability of the people who keep the business running, or the loans that depend on the owner’s ability to work. These three solutions fill those gaps.

Key takeaways

Key person replacement insurance pays the business if a key employee becomes totally disabled.
A business loan protection rider on overhead expense coverage can reimburse business loan payments during the owner’s disability.
A supplemental health benefit rider can pay a lump sum for cancer, stroke, or bypass surgery while disabled.

If the owner can’t work, the business loan still comes due. A business loan protection rider can cover it.

Key person replacement insurance

Provides funds to the business when a key employee becomes totally disabled. The employer decides how to use benefits, commonly for recruiting and training a replacement, temporary staff, or offsetting lost revenue. See key person disability for business owners.

Business loan protection rider

Added to an overhead expense policy, this rider reimburses the business owner for covered loan payments during a total disability. Covered loans can include buying a practice or business, equipment, buildings or land, expansion, renovations, or working capital. More on business overhead expense coverage.

Supplemental health benefit rider

At one carrier, a no-cost rider pays a one-time lump sum equal to six times the policy’s maximum monthly benefit (including any Social Insurance Substitute benefit) if the insured is disabled under the policy and has coronary artery bypass surgery, cancer, or a stroke.

Availability

These solutions are offered by only a few carriers and aren’t available in every state. Product details change, so contact us for current availability before presenting them.

Frequently asked questions

What is key person replacement insurance?

Disability coverage that pays a business if a key employee becomes totally disabled, to help cover recruiting, training, temporary help, or lost revenue.

What does a business loan protection rider cover?

Business loan payments, such as for a practice purchase, equipment, or expansion, while the owner is totally disabled.

Is business loan protection available in every state?

No. It’s offered by a few carriers and isn’t available in all states.

50+ Years in Business60+ Top-Rated Carriers★★★★★ Rated by Advisors

Reviewed by Tim Fuller on 2026-09-25

Tim Fuller

President, SRS Inc.

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Section 162 Executive Bonus: Single vs. Double Bonus Explained

September 25, 2026February 8, 2022 by Tim Fuller

A Section 162 executive bonus plan is one of the simplest ways for an employer to reward key employees with life insurance. The biggest source of confusion is how the employee’s tax is handled. Here’s how single and double bonus methods work — and a cleaner way to present the plan.

Key takeaways

In a 162 bonus plan, the employer pays the premium, deducts it as compensation, and reports it as income on the employee’s W-2.
Under a single bonus, the employee owes tax out of pocket; under a double bonus, the employer grosses up the bonus to cover that tax.
Starting from the employer’s budget and working backward to the coverage avoids sticker shock for both parties.

When explained and implemented correctly, the employee receives the benefit with no out-of-pocket tax at the end of the year.

How a 162 executive bonus plan works

The employer agrees to pay the premium on a life insurance policy owned by a selected employee. The employer deducts the payment as reasonable compensation and reports it as taxable income on the employee’s W-2. The employee owns the policy, names the beneficiary and keeps the coverage and cash value.

It’s simple to set up and administer, which is why it’s so popular with closely held businesses.

Single bonus: simple, but with a tax surprise

With a single bonus, the employer pays only the premium. The employee then owes income tax on that amount — out of pocket — for what is effectively a non-cash benefit.

Even with proper warning, that tax bill can take the luster off the plan when the employee files their return.

Double bonus: covering the employee’s tax

With a double bonus, the employer “grosses up” the bonus so the total covers both the premium and the anticipated tax. The employee receives the coverage with no out-of-pocket cost.

The catch: when an employer hears this explained after agreeing to a premium amount, it can feel like the plan suddenly costs more than expected.

A better way to present it: start with the budget

Instead of leading with single versus double bonus, focus on how much the employer is willing to commit. Then work backward: set aside the portion needed for withholding, and design the coverage around the after-tax premium.

The employer sends the premium to the carrier and withholds the remainder. The employer stays within budget, and the employee gets the benefit with no year-end tax surprise. The bonus is still taxable, but it feels tax-neutral to the employee.

If the after-tax premium doesn’t buy enough coverage for the employee’s full need, remember the policy belongs to the employee. It can be designed for the total need, with the employee paying additional premium personally, by direct payment or payroll deduction if the employer agrees. For related planning on valuing key employees, see our article on key person coverage and sweat equity.

Frequently asked questions

What is the difference between a single and double bonus?

With a single bonus, the employer pays only the premium and the employee pays the income tax on it. With a double bonus, the employer increases the bonus to cover the employee’s tax as well.

Is a 162 executive bonus deductible for the employer?

Generally yes, as compensation, provided total compensation is reasonable. Bonuses to business owners of pass-through entities raise different issues, so confirm treatment with a tax advisor.

Who owns the policy in a 162 bonus plan?

The employee owns the policy, names the beneficiary and controls the cash value, unless the plan adds a restrictive endorsement or vesting arrangement.

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Reviewed by Tim Fuller on 2026-09-25

Tim Fuller

President, SRS Inc.

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Life Insurance Underwriting for Diabetes: Type 1, Type 2, and Pre-Diabetes

September 25, 2026February 4, 2022 by Tim Fuller

Diabetes is one of the most common impairments on a life application, and one of the most misunderstood. A diagnosis alone rarely decides the offer. How well it’s controlled, how long the client has had it, and whether there are complications decide it.

Key takeaways

Type 2 diabetes with good control and no complications may qualify for Standard rates.
Type 1 diabetes is usually table-rated, but best-case clients over age 50 may see ratings as favorable as Table 2.
Pre-diabetes and gestational diabetes history may qualify for Standard Plus, and A1C history is the single most important document in the file.

With good control and no complications, a Type 2 diabetic may qualify for Standard rates — not the automatic table rating many advisors expect.

What underwriters look at

Underwriters build a picture of long-term control, not a single snapshot. The main factors are:

Type of diabetes and age at diagnosis.
A1C history, the average blood sugar over roughly three months, both at diagnosis and over time.
Complications, including neuropathy (nerve damage), kidney disease, retinopathy, stroke, and cardiovascular disease.
Treatment, whether diet, oral medication, or insulin, and how consistently the client follows up with their doctor.
Other risk factors, such as build, blood pressure, cholesterol, and tobacco use.

The four types, and how each is viewed

Type 2 is the most common form. The body is resistant to insulin and can’t use it effectively. Type 1 is an autoimmune condition where the body produces little or no insulin, usually diagnosed early in life; latent autoimmune diabetes in adults (LADA) is a slower-progressing form. Pre-diabetes, also called impaired fasting glucose or impaired glucose tolerance, means glucose is above normal but below the diabetes threshold. Gestational diabetes occurs during pregnancy and usually resolves after delivery, though it raises the chance of Type 2 later.

Typical underwriting outcomes

Type 2: may qualify for Standard with good control and no complications.
Type 1: best case around Table 2 for clients over age 50; higher table ratings are common at younger ages, depending on control and complications.
Pre-diabetes and gestational diabetes: may qualify for Standard Plus, and in some cases better. See how one client with a borderline blood sugar reading reached Super Standard Non-Tobacco.

These are illustrative ranges. Carriers differ widely on diabetes, so the same file can produce very different offers depending on where it goes.

How to prepare a diabetes case

Gather the client’s recent A1C results (several readings over time are better than one), a full medication list, and any eye, kidney, or cardiac screening results. Then let our Underwriting Team pre-screen the case informally before you apply, so it goes first to the carrier most likely to give the best offer.

Frequently asked questions

Can a Type 1 diabetic get life insurance?

Yes. Type 1 diabetes is usually table-rated, but clients with good control and no complications can get coverage, and best-case clients over 50 may see ratings around Table 2.

What A1C do life insurance underwriters want to see?

Carriers set their own thresholds, but the closer A1C readings are to normal and the more stable they are over time, the better the offer. Send us the client’s history and we’ll tell you which carriers are most favorable for it.

Does gestational diabetes affect life insurance rates?

Usually only modestly. A history of gestational diabetes that resolved after pregnancy may qualify for Standard Plus or better, depending on the carrier and current blood sugar results.

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Reviewed by Tim Fuller on 2026-09-25

Tim Fuller

President, SRS Inc.

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Why Tax Season Is a Great Time to Talk About Long-Term Care

September 25, 2026February 3, 2022 by Tim Fuller

Every spring, clients sit down with their finances whether they want to or not. That makes tax season one of the easiest times of year to bring up long-term care.

Key takeaways

Clients are already reviewing their financial picture at tax time, so gaps are easier to see.
Premiums for tax-qualified LTC policies may be deductible, and many states offer credits or deductions.
Using a tax refund to pay the annual premium can make coverage feel effortless.

Turn the tax refund into the long-term care premium, and the annual payment becomes a non-event.

Clients are already in planning mode

Tax preparation forces clients to look at income, savings, and expenses. It’s a natural moment to ask what would happen to those numbers if they needed care, and whether their plan covers it.

Lead with the tax benefits

Tax-qualified LTC premiums may be deductible as medical expenses up to IRS age-based limits, self-employed clients can often deduct them directly, and many states offer their own deductions or credits. Details are in four ways LTC insurance provides tax advantages.

Use the refund

Suggest that clients put their tax refund toward the annual premium. It turns a new expense into money they weren’t counting on, and makes the purchase easier to commit to each year.

Work with tax professionals

CPAs and tax preparers see clients’ full financial picture every year. Partnering with them to flag clients who could benefit from LTC planning can be a steady referral source.

Frequently asked questions

Are long-term care premiums tax deductible?

Premiums on tax-qualified policies may be deductible as medical expenses, up to age-based IRS limits, and some states offer additional deductions or credits.

When is a good time to talk to clients about long-term care?

Tax season, annual reviews, and life events such as retirement or a parent needing care are natural openings.

Can a tax refund be used to pay LTC premiums?

Yes. Many clients find using their refund makes the annual premium easier to manage.

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Reviewed by Tim Fuller on 2026-09-25

Tim Fuller

President, SRS Inc.

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Sell the Need Before the Solution: A Disability Income Sales Tip

September 25, 2026February 2, 2022 by Tim Fuller

Advisors often jump straight to the policy before clients understand what’s at stake. The fastest route to a disability sale is to slow down and make sure the need is clear first.

Key takeaways

Start with what the client values most: family, home, plans, and future security.
Three questions frame the need: How would bills be paid? What would change for the family? How would they recover under financial stress?
Clients who understand the consequences need far less convincing about the product.

Few middle-income families could cover their bills for more than a few weeks without a paycheck.

Start with what matters most

Ask what the client values: family, home, financial plans, a secure future. Then help them see what they could lose if they couldn’t work, and acknowledge together that it’s a real problem.

Financial security: how would they pay the bills?

Most middle-income families don’t have savings to cover more than a few weeks without income. Once paychecks stop, bills drain savings and set plans back for years. For these clients, income protection means meeting obligations and protecting the future.

Family: what would change?

A disability changes everything at home. Plans go on hold, routines change, family members take on more, and medical appointments fill the calendar. Clients want to know they can keep life as normal as possible.

Recovery: can they focus on getting well?

Financial worry makes recovery harder. Knowing monthly benefits will keep things on track lets clients focus on getting better.

Then present the solution

Once the need is clear, the product conversation is much easier. For the next step, try three questions that lead to the DI sale.

Frequently asked questions

How do you sell disability insurance?

Start with the client’s values and what they’d lose without income, then present coverage as the way to protect it.

Why do disability sales stall?

Often because the advisor presents the product before the client understands the risk and its consequences.

What is the biggest risk disability insurance protects?

The ability to earn an income, which pays for everything else in a client’s financial plan.

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Reviewed by Tim Fuller on 2026-09-25

Tim Fuller

President, SRS Inc.

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Life Insurance 101 for Multi-Service Advisors: The Fundamentals in Three Pages

September 25, 2026February 1, 2022 by Tim Fuller

Harvard’s Charles Eliot argued that the essentials of a liberal education could fit on a five-foot shelf. The essentials of life insurance planning fit in far less. If your core practice is investments, P&C or health, here’s the short list of what you need to start helping clients with life coverage confidently.

Key takeaways

Many advisors hesitate to discuss life insurance simply because they’re unsure of the fundamentals — not because the concepts are hard.
Four areas cover most conversations: types of coverage, quick needs calculations, ownership and beneficiary design, and basic income and transfer tax rules.
SRS offers a three-page quick-study and phone-based training to help you and your staff get comfortable fast.

The key is reducing a body of knowledge to its fundamentals — and life insurance planning reduces nicely to just three pages.

Why multi-service advisors hesitate

More advisors than ever serve clients across disciplines. Many would like to help with life insurance but hold back because they feel unsure about the concepts and the general considerations that come with every case. The good news: the fundamentals are compact, and a little structure goes a long way.

The four fundamentals

Types of coverage. Term for temporary needs; permanent coverage — whole life, universal life, indexed and variable UL — for lifelong needs and cash value goals.
Quick needs calculations. Income replacement, debts, education and final expenses. Carriers also use income-multiple guidelines; see our guide to income multiples in life underwriting.
Ownership and beneficiaries. Who owns the policy and who receives the proceeds drives control, creditor exposure and estate inclusion. Mistakes here are common and avoidable — see 10 common life insurance mistakes.
Income and transfer taxes. Death benefits are generally income-tax-free, but may be included in the insured’s estate if the insured holds incidents of ownership.

Get the three-page quick-study

We’ve condensed these fundamentals into a three-page overview covering coverage types, needs calculations, common owner and beneficiary mistakes, and the key income and transfer tax issues. It’s useful for your own review, for training staff, and for CPAs and attorneys who want a clear overview of the topic. Contact us for a copy.

Training that fits your schedule

We can also walk your team through the outline on a simple conference call — no webinar software required. Participants dial in from wherever they are and come away more confident presenting life insurance concepts to clients. And when a case comes in, our team is ready to help with design, quoting and underwriting.

Frequently asked questions

What are the main types of life insurance?

Term insurance covers a set period and suits temporary needs. Permanent insurance — whole life and the universal life family, including indexed and variable UL — is designed to last for life and can build cash value.

How much life insurance does a client need?

Start with income replacement, outstanding debts, education goals and final expenses, less existing assets and coverage. Carriers also cap coverage using income multiples based on age.

Is life insurance taxable?

Death benefits are generally received income-tax-free. However, if the insured owns the policy or holds incidents of ownership, proceeds may be included in the taxable estate.

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Reviewed by Tim Fuller on 2026-09-25

Tim Fuller

President, SRS Inc.

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IRA Legacy Planning After the SECURE Act: Replacing the Lost Stretch With Life Insurance

September 25, 2026January 31, 2022 by Tim Fuller

For years, advisors helped clients stretch an inherited IRA across children and grandchildren for decades of tax deferral. The SECURE Act ended that for most heirs. Clients who don’t need their IRA for income now face a different problem, and life insurance is one of the cleanest solutions.

Key takeaways

Since 2020, most non-spouse beneficiaries, including children and grandchildren, must empty an inherited IRA within 10 years.
That compresses taxable distributions into the heirs’ working years, often at higher tax brackets.
Using required minimum distributions (RMDs) to fund life insurance can turn a taxable IRA inheritance into an income-tax-free death benefit.

The stretch IRA is gone for most heirs: inherited IRAs generally must be emptied within 10 years. Life insurance can replace that lost deferral with an income-tax-free legacy.

What the SECURE Act changed

Before 2020, a beneficiary could stretch distributions from an inherited IRA over their own life expectancy, so naming young grandchildren could extend tax deferral for decades. The SECURE Act replaced this with a 10-year rule for most non-spouse beneficiaries. Only “eligible designated beneficiaries” keep a life-expectancy payout: surviving spouses, the account owner’s own minor children (until adulthood), disabled or chronically ill beneficiaries, and beneficiaries not more than 10 years younger than the owner. Grandchildren generally don’t qualify. Depending on the circumstances, annual distributions may also be required during the 10 years.

Why this is a problem for wealthy clients

Clients who don’t need their IRA for retirement income still must take RMDs (currently starting at age 73). Their heirs then inherit the balance and must draw it all out within a decade, usually during their peak earning years, when every distribution is taxed at their top rate. The multi-generational stretch that once softened this is no longer available.

The life insurance solution

A client can use part of each RMD, after tax, to pay premiums on a life insurance policy. The death benefit, typically owned by an irrevocable life insurance trust (ILIT) or payable directly to the heirs, is generally received income-tax-free. The heirs still inherit whatever remains in the IRA, but a significant part of the legacy now arrives tax-free rather than as taxable income over 10 years. For more on this approach, see how to use RMDs in life insurance sales.

Illustration

Assume an IRA projected at $500,000 at the surviving spouse’s death. Under the 10-year rule, children in high brackets could lose a large share of it to income tax as they withdraw it. If the clients instead used RMDs to fund a $500,000 survivorship policy, the children would receive $500,000 income-tax-free in addition to the remaining IRA. The actual design depends on ages, health, and tax rates, so run an illustration for each case.

Frequently asked questions

Does the stretch IRA still exist?

Only for eligible designated beneficiaries, such as surviving spouses, minor children of the owner, disabled or chronically ill beneficiaries, and those not more than 10 years younger. Most other heirs must empty the account within 10 years.

Can grandchildren still stretch an inherited IRA?

Generally no. Grandchildren are usually subject to the 10-year rule under the SECURE Act.

How does life insurance help with IRA inheritances?

Clients can use RMDs to pay premiums on a policy whose death benefit passes to heirs income-tax-free, offsetting the taxes heirs will owe on the inherited IRA.

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Reviewed by Tim Fuller on 2026-09-25

Tim Fuller

President, SRS Inc.

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Tim Fuller

Convertible Term to Survivorship: An Affordable Estate Planning Bridge for Hesitant Clients

Why clients hesitate on survivorship life

How the conversion strategy works

Owning the term policies in an ILIT

Putting it to work

Frequently asked questions

Tim Fuller

We’re Here to Help

The case

The results, carrier by carrier

What made the difference

How to present a Hepatitis C case

Frequently asked questions

Tim Fuller

We’re Here to Help

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We’re Here to Help

Tim Fuller

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