Life Insurance: Unique... and Complicated
Life insurance* is a unique financial instrument with features that are available only in life insurance. For example, 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, particularly its tax benefits and cost-to-bene fit ratio, open up opportunities for cost-effective and tax-efficient solutions for complex financial issues.
But beyond its uniqueness, life insurance is also complicated. There is a science to life insurance and sound insurance planning involves risk/needs analysis, carrier due diligence, product selection, policy design, underwriting, knowledge of the tax code, actuarial and legal aspects of life insurance, and so on. As you might have guessed, the "science" part of life insurance requires considerable expertise and experience. And, yes, we do have the expertise and experience necessary to navigate through it all.
But beyond its uniqueness, life insurance is also complicated. There is a science to life insurance and sound insurance planning involves risk/needs analysis, carrier due diligence, product selection, policy design, underwriting, knowledge of the tax code, actuarial and legal aspects of life insurance, and so on. As you might have guessed, the "science" part of life insurance requires considerable expertise and experience. And, yes, we do have the expertise and experience necessary to navigate through it all.
*By life insurance, we mean LIFE INSURANCE, DISABILITY INSURANCE, LONG-TERM CARE INSURANCE and ANNUITIES.
What Properly Designed Life Insurance Can Do For You
Taxable EstatesLeave cash to your heirs so they can pay estate taxes Equalize inheritance among your children Maximize generational wealth Provide financial security for your child with special needs Keep costs of long-term care from depleting your assets Get guaranteed lifetime income to plan for longevity Bypass inherited IRA tax rules |
BusinessesAttract and keep your executives with a superior compensation package Carve out a retirement plan just for your executive team Carve out life and/or disability insurance just for your executives Protect the value of your business so you can sell at a premium later "Buy time" if you or your employee dies or become too sick to work Provide cash for you to buy out your partner if they retire, die or become too sick to work |
High Income EarnersProtect your family from financial ruin if you die too soon Continue your income if you get injured or become too sick to work Add a low-volatility, tax-efficient asset class without market risk to your investment portfolio Save money without being taxed on the growth Withdraw money without being taxed Save money without contribution limits, early withdrawal penalties or required minimum distributions |
