Co-Founder, TermInsuranceBrokers.com, Goldenzweig Financial Group, Las Vegas, Nevada
The most common trusts you see when looking at it in relation to life insurance is a revocable or irrevocable life insurance trust.
When using a trust with life insurance, the trust will be the owner and beneficiary of the policy - whoever the trust is on will be the insured. When completing the application, you're entering in the trust's information (name of trust, date it was created, etc.) in the owner and beneficiary sections - some applications may have a separate trust information page to include as well. The carrier will also ask for a copy of the first several pages of the trust (needed for verification purposes).
The trustee of the trust will be the person signing the paperwork where it asks for signature of owner.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
A trust is a legal entity, just like a person. A trust can purchase life insurance (or other forms of insurance.) The trust must have an insurable interest in the person upon whom the life insurance is being purchased. That means that they cannot select someone at random, buy a policy and gamble on their longevity. The trust can also designate the beneficiary.
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When using a trust with life insurance, the trust will be the owner and beneficiary of the policy - whoever the trust is on will be the insured. When completing the application, you're entering in the trust's information (name of trust, date it was created, etc.) in the owner and beneficiary sections - some applications may have a separate trust information page to include as well. The carrier will also ask for a copy of the first several pages of the trust (needed for verification purposes).
The trustee of the trust will be the person signing the paperwork where it asks for signature of owner.