Insurance is Unique... and Complicated
Insurance is a unique financial instrument with features that are unavailable in any other financial products. For example, only an annuity—and no other financial product—can provide you with guaranteed income for as long as you live. Similarly, insurance can also assume the risk of losing your income from disability or paying for costs of long-term care in exchange for a relatively small price (premium). On top of that, Uncle Sam has given his full blessing to grieving family members (or a devastated business) to receive life insurance proceeds free of income tax.
These unique features are certainly nice. But, insurance is also complicated—far more so than most people might realize. It's misunderstood even by many otherwise competent financial advisors. To make matters worse, there is a lot of misinformation being disseminated through articles, blogs and other media channels—even from credible sources—with little intellectual discipline or thoughtful analysis.
With such confusion and misinformation surrounding insurance, we cannot overstate the importance of sensible insurance planning and a solid understanding of the "science" behind it—carrier due diligence, product selection, policy design, underwriting, income and estate tax implications, legal aspects, and so on—that requires considerable expertise and experience.
Additionally, it should be remembered that insurance should be an integral part of a sound financial, estate and/or business plan. Whether it's providing estate liquidity, safeguarding a business from the unexpected, or building a sustainable income to minimize the probability of running out of money in retirement, insurance should make sense in the context of an overall financial, estate, and/or business plan.
These unique features are certainly nice. But, insurance is also complicated—far more so than most people might realize. It's misunderstood even by many otherwise competent financial advisors. To make matters worse, there is a lot of misinformation being disseminated through articles, blogs and other media channels—even from credible sources—with little intellectual discipline or thoughtful analysis.
With such confusion and misinformation surrounding insurance, we cannot overstate the importance of sensible insurance planning and a solid understanding of the "science" behind it—carrier due diligence, product selection, policy design, underwriting, income and estate tax implications, legal aspects, and so on—that requires considerable expertise and experience.
Additionally, it should be remembered that insurance should be an integral part of a sound financial, estate and/or business plan. Whether it's providing estate liquidity, safeguarding a business from the unexpected, or building a sustainable income to minimize the probability of running out of money in retirement, insurance should make sense in the context of an overall financial, estate, and/or business plan.
What Properly Designed Insurance Can Do For You
// Protect surviving family or business from financial ruin due to premature death
// Replace income lost if unable to work due to illness or injury
// Minimize significant erosion of assets due to costs of long-term care
// Enhance retirement security with guaranteed lifetime income
// Provide liquidity to meet estate tax obligations in cost- and tax-efficient ways
// Provide financial security for a child with special needs
// Add a low-volatility, tax-efficient asset without market risk
// Provide an alternative to "stretch IRA" without being bound by IRA tax rules
// Enable a business to "buy time" if an owner or a key employee dies or is disabled
// Provide funds for surviving owners to buy deceased/disabled owner's business interest
// Provide insurance and retirement benefits to executives to help attract and retain them
// Replace income lost if unable to work due to illness or injury
// Minimize significant erosion of assets due to costs of long-term care
// Enhance retirement security with guaranteed lifetime income
// Provide liquidity to meet estate tax obligations in cost- and tax-efficient ways
// Provide financial security for a child with special needs
// Add a low-volatility, tax-efficient asset without market risk
// Provide an alternative to "stretch IRA" without being bound by IRA tax rules
// Enable a business to "buy time" if an owner or a key employee dies or is disabled
// Provide funds for surviving owners to buy deceased/disabled owner's business interest
// Provide insurance and retirement benefits to executives to help attract and retain them
Our Carriers
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and other top carriers.
As an independent firm, we are not affiliated with any insurance carriers.
