What Is Irrevocable Life Insurance?

  1. 63333 POINTS
    Peggy Mace
    Most of the U.S.
    Life insurance is not usually referred to as irrevocable but there is such a thing as an Irrevocable Life Insurance Trust (ILIT) that you may be referring to. This is a trust that owns one or more life insurance policies, and is the beneficiary of said life insurance policies, for tax purposes. By virtue of being irrevocable, it is not able to be changed by the person who has set it up to avoid paying estate taxes on the proceeds.
    Answered on July 12, 2013
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