operating loan Estate liquidity, when an estate has an immediate need for cash to settle federal estate taxes, state inheritance taxes, or unpaid income taxes on income in respect of a decedent (IRD). Estate replacement, when an insured has donated assets to a charity and wants to replace the value with cash death benefits. Business succession & continuity, for example to fund a cross-purchase or stock redemption buy/sell agreement. Key person insurance, to protect a company from the economic loss incurred when a key employee or manager dies. Executive bonus, under IRC Sec. 162, where an employer pays the premium on a life insurance policy owned by a key person. The employer deducts the premium as an ordinary business expense, and the employee pays the income tax on the premium. Controlled executive bonus, just like above, but with an additional contract between an employee and employer that effectively limits the employee's access to cash values for a period of time (golden handcuffs). Split dollar plans, where the death benefits, cash surrender values, and premium payments are split between an employer and employee, or between an individual and a non-natural person (e.g. trust). Non-qualified deferred compensation, as an informal funding vehicle where a corporation owns the policy, pays the premiums, receives the benefits, and then uses them to pay, in whole or in part, a contractual promise to pay retirement benefits to a key person, or survivor benefits to the deceased key person's beneficiaries. An alternative to long-term care insurance, where new policies have accelerated benefits for Long Term Care. Mortgage acceleration, where an over-funded UL policy is either surrendered or borrowed against to pay off a home mortgage. Life insurance retirement plan, or Roth IRA alternative. Traditional IRA and 401(k) contributions get an income tax deduction but, in exchange for this deduction, every dollar distributed gets taxed as if it were salary or wages. People who prioritize having a source of tax-free funds in retirement over a current tax deduction may do well to evaluate Roth plans and life insurance as an alternative. Roth IRAs, Roth 401(k)s, and cash value life insurance share features that make life insurance a viable option to supplement or replace Roth retirement plans. All three have these attributes: (1) contributions are paid with after-tax dollars (no income tax deduction), (2) the growth is not taxed, and (3) they may serve as a source of tax-free