Jeffrey Manola is an experienced life insurance agent and the founder of Top Quote Life Insurance. His mission when he created Top Quote Life Insurance was to provide online consumers searching for life insurance with the absolute best quotes for term life insurance, permanent life insurance, no medical exam life insurance, and burial insurance. Not only does he strive to provide you with the ...

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insur...

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Reviewed by Leslie Kasperowicz
Farmers CSR for 4 Years

UPDATED: Oct 19, 2021

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Advertiser Disclosure: We strive to help you make confident life insurance decisions. Comparison shopping should be easy. We are not affiliated with any one life insurance provider and cannot guarantee quotes from any single provider.

Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different life insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about life insurance. Our goal is to be an objective, third-party resource for everything life insurance-related. We update our site regularly, and all content is reviewed by life insurance experts.

Facts You Should Know

  • There are many life insurance companies that offer policies that can be inserted into a trust
  • Life insurance trusts protect your assets from inheritance taxes
  • Once you decide to place your life insurance policy into a trust, you cannot take it back out

Investing your life insurance policy into a trust is a great way to keep control over your life insurance. Often, life insurance policyholders will create a life insurance trust to control how their beneficiaries are paid out.

As life insurance trusts have grown in popularity, there are more life insurance companies that offer policies that can be inserted into a trust.

Ultimately, life insurance trusts save you from having to pay an inheritance tax on money paid out from a loved one’s life insurance policy.

Keep reading to learn more about the best life insurance companies that offer policies that can be inserted into a trust. Specifically, we’ll look at which companies offer these types of life insurance policies and how trusts work.

Ready to compare affordable life insurance companies that offer policies that can be inserted into a trust? Enter your ZIP code into our free online tool for instant life insurance rates from companies near you.

What are the best life insurance companies that offer policies that can be inserted into a trust?

Whole, term, and universal life insurance policies are incredibly beneficial to a policyholder’s loved ones. Proceeds from a life insurance policy can entirely cover funeral expenses, and leave beneficiaries an extra financial cushion.

However, what many people don’t take into consideration is that there may be a 40% inheritance tax on the lump sum payout they receive. This can be a huge loss for those anticipating a decent payout.

Many life insurance policyholders have opted to insert their policies into a trust to bypass the inheritance tax. Putting your life insurance into a trust means that the money paid out to your beneficiaries won’t become part of your estate when you pass.

Because life insurance trusts are growing more popular, most life insurance companies offer policies that can be inserted into a trust.

The goal of putting your life insurance policy into a trust is to protect your assets. When your policy is in a trust, the payout is no longer within your estate and is therefore no longer subject to an inheritance tax.

Your beneficiaries will even receive their payout more quickly (within weeks of passing) than with a policy not inserted into a trust.

As discussed here, there are great benefits of putting a life insurance policy into a trust. However, there are also a few disadvantages.

Keep in mind that putting your life insurance policy into a trust is a permanent decision. Once you choose to do so, you cannot change your mind and take the policy out of the trust.

Similarly, you relinquish all control over the life insurance policy by placing it into a trust. Once you do this, the life insurance policy becomes a trust-owned life insurance policy and you no longer have ownership of the policy.

There is also a three-year look-back period, during which if you pass, your life insurance proceeds will be counted in your estate. This also means the proceeds are subject to an inheritance tax.

If you are unsure about putting your life insurance policy into a trust, talk with an insurance agent. They will be able to adequately explain everything you need to know before you make this permanent decision.

For the best idea of what to expect, compare life insurance rates from life insurance companies that offer policies that can be inserted into a trust and from those that don’t.

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How do you insert a life insurance policy into a trust?

Life insurance trusts are legal arrangements. However, unlike other legal arrangements, the process of inserting a life insurance policy into a trust is simple.

Once you have decided to place your life insurance policy into a trust, you should determine your trustee or trustees. This is the person (or people) that is legally responsible for looking after the assets within the trust and should be someone you know well and expect to live longer than you.

After you have established trustees, compare life insurance providers. These should be both life insurance companies that offer policies that can be inserted into a trust and those that do not.

The purpose of comparing life insurance companies that don’t offer policies that can be inserted into a trust is to give you a better scope of what rates and coverage to expect.

Once you have decided on a reputable life insurance provider, choose whether or not you want to put your policy into a trust at a later date or do so immediately.

Because this is an irrevocable decision, we recommend talking with your life insurance agent about your specific needs. Placing a life insurance policy into a trust may or may not be the best thing for you, so it’s important to know what you need beforehand.

Life Insurance Companies That Offer Policies That Can Be Inserted Into A Trust: The Bottom Line

There are more life insurance companies that offer policies that can be inserted into a trust than there are those that don’t.

Comparing multiple life insurance rates from life insurance companies that offer policies that can be inserted into a trust helps reduce your options.

It is helpful to understand that although you have more say over your beneficiaries, you also relinquish all ownership over your life insurance policy.

Placing your life insurance policy into a trust is a permanent decision. So, we recommend talking with your insurance agent beforehand. They will be able to help you understand what you need to know about the process.

An insurance agent may also be able to give you a life insurance trust sample or an irrevocable life insurance trust sample if you need either.

It’s also important to know how to set up a trust for life insurance before you start the process. This will ultimately save you time as you seek to secure your assets.

Know exactly what coverage you have and what coverage you need before you have to pay a lot of money out of your pocket.

Ready to buy life insurance from life insurance companies that offer policies that can be inserted into a trust? Enter your ZIP code into our free online comparison tool to find the best life insurance companies near you.