Holistic financial plan

Insurance should be a critical component of this approach, which factors in the actual plans and goals of a client when making decisions on financial strategies. It is responsive to a client’s life events, such as divorce, unemployment, purchasing a home, or major illness.

Tax-advantaged growth

Permanent life insurance offers a means to accumulate tax-advantaged savings that can be accrued during the policy owner’s lifetime.

Income-tax-free death benefit

A significant life insurance advantage is the death benefit payable to a beneficiary, which is generally income-tax-free (certain restrictions apply).

Estate planning

Life insurance can be used in estate planning to address debt, taxes, income replacement, probate, or charitable contributions. Several policies are applicable, including joint life that insures two people, with the death benefit payable upon the death of the second insured. Irrevocable insurance trusts can be created to act as a policy beneficiary to exclude policy proceeds from an estate.

Retirement planning

Life insurance can be a vehicle for supplemental retirement income. Term life insurance provides cost-effective basic protection upon death, however permanent life insurance has a cash value component that can accumulate and be used for income.

Business considerations

Life insurance can act as a funding mechanism to cover several business contingencies. Situations in which it can be applied include business continuity, succession plans, buy/sell agreements for partnerships, or protecting a key employee.

Charitable giving

Life insurance proceeds are ideal for a charity contribution because they are not subject to income and estate taxes or probate costs.

This material contains only general descriptions and is not a solicitation to sell any insurance product or security, nor is it intended as any financial or tax advice. For information about specific insurance needs or situations, contact your insurance agent. This article is intended to assist in educating you about insurance generally and not to provide personal service. They may not take into account your personal characteristics such as budget, assets, risk tolerance, family situation or activities which may affect the type of insurance that would be right for you.