Using Estate Life Insurance to “Get Off the Line”

December 26, 2019
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A basic principle of self-defense is to “get off the line.” Don't enter situations that could mean trouble. Don't expose yourself to a threat you can't handle. Don't put yourself at a disadvantage.

If trouble does find you, don't present an easy target: keep moving, change position…. Don't keep your door open. Be sure to protect the most vulnerable and valuable parts of your body. 

Interestingly this is a fundamental principle in the use of life insurance as well. For example, using a policy to preserve your wealth is a good example of “getting off the line.”

A person or a couple of high net worth, will buy life insurance to cover their estate tax obligation. When their estate is settled, the policy proceeds will be used to pay the tax bill.

This allows them to pass on their assets intact to the next generation. They won't have to sell their homes, their businesses, their other properties, or any other assets just to pay Uncle Sam.

This is yet another example of how martial arts and insurance use the same principles.