Some individuals leverage VUL life insurance for estate-planning objectives, particularly when aiming to:

• Cover potential estate taxes or final expenses.
• Provide an inheritance to beneficiaries without forcing the sale of illiquid assets, like real estate or business shares.
• Ensure that a spouse or child receives financial security, especially if they have ongoing support needs.

If significant wealth is at stake, placing a VUL policy in an irrevocable life insurance trust (ILIT) can remove the death benefit from the taxable estate in certain jurisdictions. However, trust setups can be complex, and transferring ownership of the policy to a trust must be done with careful attention to legal and tax details. Nonetheless, a properly structured VUL policy in a trust can allow investment growth while ensuring the insurance proceeds go to named beneficiaries without being diminished by estate taxes.