Let Properly Designed Life Insurance Protect You
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 open up opportunities for tax-efficient and cost-effective solutions for complex financial issues.
But beyond its uniqueness, life insurance is also complicated. There is a science to sound insurance planning. It's not rocket science, but it is a science – like 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 – which requires considerable expertise and experience.
But beyond its uniqueness, life insurance is also complicated. There is a science to sound insurance planning. It's not rocket science, but it is a science – like 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 – which requires considerable expertise and experience.
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Life Insurance: Unique... and Complicated
THERE ARE FEATURES THAT ARE AVAILABLE ONLY IN LIFE INSURANCE
Life insurance* is a unique financial instrument with features that are available only in life insurance.
For example, only annuities provide you with a guaranteed income for as long as you live. Similarly, disability insurance can assume the risk of losing your income if you're too sick to work. 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.
For example, only annuities provide you with a guaranteed income for as long as you live. Similarly, disability insurance can assume the risk of losing your income if you're too sick to work. 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.
LIFE INSURANCE IS COMPLICATED
Life insurance is also a complicated financial instrument.
With due respect, most financial advisors (even good ones) are stumped when it comes to life insurance. It doesn't help that there's so much misinformation online about life insurance, often with little intellectual honesty or thoughtful analysis, even by otherwise credible and well-meaning folks. So is it any wonder that average folks are confused about life insurance?
With due respect, most financial advisors (even good ones) are stumped when it comes to life insurance. It doesn't help that there's so much misinformation online about life insurance, often with little intellectual honesty or thoughtful analysis, even by otherwise credible and well-meaning folks. So is it any wonder that average folks are confused about life insurance?
THERE IS A SCIENCE TO LIFE INSURANCE
There is a science to life insurance. It's the antidote to misinformation and unfounded biases.
Sound insurance planning involves risk/needs analysis, carrier due diligence, product selection, policy design, underwriting, knowledge of the tax code, actuarial aspects of life insurance, legal aspects of life insurance, and so on. As you might have guessed, the "science" part of life insurance requires considerable expertise and experience.
Sound insurance planning involves risk/needs analysis, carrier due diligence, product selection, policy design, underwriting, knowledge of the tax code, actuarial aspects of life insurance, legal aspects of life insurance, and so on. As you might have guessed, the "science" part of life insurance requires considerable expertise and experience.
LIFE INSURANCE SHOULD MAKE SENSE IN THE CONTEXT OF YOUR OVERALL PLAN
Life insurance should make sense in the context of your overall financial plan.
There are many different reasons for getting insurance. You might want to be sure your family will be okay if you die. Or perhaps you want to leave enough cash behind so your heirs can pay estate tax. Maybe you're in your peak earning years and feeling vulnerable about the possibility of becoming too sick to work. Whatever your goal or concern happens to be, life insurance should always be an integral part of a sound financial plan.
There are many different reasons for getting insurance. You might want to be sure your family will be okay if you die. Or perhaps you want to leave enough cash behind so your heirs can pay estate tax. Maybe you're in your peak earning years and feeling vulnerable about the possibility of becoming too sick to work. Whatever your goal or concern happens to be, life insurance should always be an integral part of a sound financial plan.
*By life insurance, we mean LIFE INSURANCE, DISABILITY INSURANCE, LONG-TERM CARE INSURANCE and ANNUITIES.
What 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 for your heirs |
BusinessesProtect the value of your business so you sell it at a premium later "Buy time" if you or your employee dies or become to sick to work Provide cash for you to buy out your partner if they retire, die or become too sick to work Attract 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 |
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 |
