I used to work IT in the Hartford Insurance arena. One day an agent sold a Life insurance policy worth 50 million dollars to a 75 year old man. The client paid a single premium of about 53 million and his son was the sole benficiary.
Why would anyone do this? because Insurance benefits are not taxed like a ‘death tax’
Warren Buffet owns six life insurance comapanies. Yeesh. Like I wasn't cynical enough already.
You can read a pdf report of the life insurance lobby's efforts to re-institute high estate taxes here.