what is the purpose of an irrevocable life insurance trust
Life insurance trust A life insurance trust is an irrevocable, non-amendable trust which is both the owner and beneficiary of one or more life insurance policies.[1] Upon the death of the insured, the trustee invests the insurance proceeds and administers the trust for one or more beneficiaries. If the trust owns insurance on the life of a married person, the non-insured spouse and children are often beneficiaries of the insurance trust. If the trust owns "second to die" or survivorship insurance which only pays when both spouses are deceased, only the children would be beneficiaries of the insurance trust.
Stop-loss insurance Companies providing health insurance for their employees through a self-insured plan often subscribe to stop loss policies in order to protect themselves against catastrophic claims. The organization which takes the insurance policy is called the insured and the employees and other people who are covered through the policy are called participants. Most of the time there is an annual limit for the stop loss amount for each participant and an aggregate amount for each policy year. The premium is calculated for each employee for each month. The premium is based on the number of participants, age of the participants and various other information.