LIFE INSURANCE | LONG TERM HEALTHCARE INSURANCE
Gift of Love
Insurance
Life Insurance
Gift of Love | Theft Protection | Income Replacement | Liquidity | Capital Transfer
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The multifaceted approach to life insurance...
'Life Insurance' in and of itself is a generic term, and is commonly thought of as a bunch of money going to someone when you die. The real purpose of insurance is something we can help you determine.
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Needs Insurance
The first thing that comes to mind when it comes to life insurance is money that will meet the needs of your dependents for living expenses, and for the life style you want them to be able to maintain and enjoy in your absence. This type of insurance is income replacement insurance. Determining the amount depends on how long the needs will be in place: Childrearing, College, Mortgage, etc.
Term insurance is often used to meet these needs. Typically, for a young couple who have children or plan to have additional children, this insurance is the cheapest and sometimes the only way to ensure that need will be met.
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Permanent Insurance
When it comes to life insurance, you have the option to rent or buy the insurance. This is somewhat like renting vs. buying a home. Term insurance is akin to renting whereas more permanent forms of contracts are equivalent to buying. These policies have a cash value that you as the owner can access and borrow against, similar to having equity in your home. Permanent policies are intended to last to your life expectancy and beyond.
Tax Favorability of Life Insurance
In connection with estate planning, life insurance can help to alleviate the burden of any death tax that may come due. Life insurance death benefits, if planned correctly in connection with your estate planning attorney, may well pass completely free of any death tax. Life insurance always passes income tax free. Therefore, when wealthy people are looking to protect their beneficiaries from the burden of having to pay a large sum of money to the IRS, they buy life insurance.
Another advantage of life insurance is that it provides tax free growth inside of your permanent contracts. The law gives a special income tax benefit to you when you buy (not if you rent) life insurance.
Contact us to learn more about the different types of life insurance protection, and to receive a no cost, no hassle, preliminary estimate.
The goal of insurance planning often goes hand in hand with the goals of estate planning, which is to maximize the Dignity of Control, while optimizing the outcome for yourself, your loved ones, charities, or what matters most to you.