A letter of intent in life insurance and estate planning is a non binding written document in which a client outlines their wishes, goals, or understandings surrounding a proposed plan, often to guide future actions or clarify the purpose behind legal structures and ownership arrangements. It may accompany a large case submission, explaining the rationale for a high face amount, or be addressed to future trustees and family members, describing how the client hopes assets and insurance proceeds will be used. While not a formal legal instrument like a will or trust, a letter of intent can provide valuable context for advisors, underwriters, trustees, and heirs.

In everyday practice, advisors use letters of intent to smooth communication with carriers and family members. For large or unusual insurance cases, a letter from the client and advisor can explain business valuation assumptions, buy sell planning, or estate tax projections supporting the requested coverage, making underwriters more comfortable. In family planning, a letter of intent might describe why certain children are receiving different amounts, how funds should support education or entrepreneurship, or what charitable goals the client hopes to advance. Trustees can refer to the letter when exercising discretion, and heirs may find guidance in understanding the client's values and decisions. Advisors often help draft such letters in coordination with attorneys, ensuring that language complements, rather than contradicts, formal documents. By incorporating letters of intent into planning, producers add a human voice to technical structures, strengthening clarity and reducing misinterpretation over time.