All accumulations (100% funds) in a DC Plan can be used to purchase Life Insurance Contracts.
To purchase any large life insurance using the big accumulations over the years in the Defined Benefit Plans, the Defined Benefit Plan funds should be rolled over into the Defined Contribution Plan (Profit Sharing Plan) and then, the entire sum can be used to buy Life Insurance Contract.
This information must be read in conjunction with the proposal I am sending to deplete the DB Plan accumulations with a purpose of unlocking the fully funded Defined Benefit Plan to allow new contributions to the DB Plan, while doubling and tripling the pension benefits you leave behind for your spouse first and children thereafter.
Regards,
Ramesh Sarva CPA