: Payouts are often subject to federal and state taxes.

: This is a long-term "buy and hold" investment; it is hard to sell quickly.

: You receive the full death benefit from the insurance company. Step-by-Step Acquisition

: Funds are held in escrow until the insurance company confirms the change of ownership.

: Analyze the "illustration" showing future premium costs and expected payout.

: They are generally uncorrelated with the stock market.

: If the insured lives longer than expected, you pay more premiums.