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Hello misterfeathers...you obviously have a lot going on here so I'm going to provide some ground-level suggestions at first, and then we can get more detailed in time.
1) What is the need for your life insurance? Is the beneficiary a charity? Spouse? Other? The costs of the insurance policy must be fully disclosed to you by the company and with the help of your insurance broker. Do you have a need to borrow from an LI policy? Also, is it held in an ILIT (irrevocable life insurance trust)?
2) At age 61, and in the current low-interest rate environment, a fixed annuity may not be in your best interest. At least with a fixed equity-indexed annuity, you can potential participate in more upside, provided the markets cooperate. The surrender charges may not be a problem if you have adequate cash reserves and expected annual income surpluses. Depending on the type of annuity, it may not pay you annually. It may just be a pure growth annuity that pays you a lump sum at the end of the term. Many annuities allow for an annual withdrawal (up to 10% of the value for example) free of a surrender charge. As for the death benefit, it will depend upon the type of contract. This is an area you would have to provide me with more information as far as the type you are looking into. There are too many alternatives for me to comment on.
3) As for your FLP, I can only say that it allows you to gift to your kids (or whomever you choose) at a reduced gift-tax cost while you continue to control and manage the assets/business. I can't comment on the asset-projection portion.
4) Asset transfers between spouses can be done using testamentary trusts or irrevocable trusts. I would need more information to comment further but long story short...an irrevocable trust will facilitate asset transfers after the last-to-die spouse typically without issues.

As a retirement funding alternative, you may want to consider a 412(i) plan as this will shelter assets from creditors, provide a current income-tax deduction, and provide an income stream during retirement. I'm assuming if you're retiring in 4 years that your practice and well-established so there wouldn't be problems making the required heavy payments into the plan.

Long-term care insurance could be another alternative but using an annuity with and LTC rider may be more beneficial. As with the other points that I've made, it just depends on what your current situation and outlook is.

If you have charitable intentions, you'll want to look into a Charitable Remainder Trust which allows you to get a current income tax deduction, get current use of the gifted asset, then have your charity of choice benefit when you pass away. Using a CRT with a life insurance policy then replaces the value of that asset free of income tax.

Finally, as for your term policy, that's quite an annual premium and I would have to understand what your strategy is to use term over permanent life.

I hope this helps you...
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