The flexibility to help you protect, accumulate and transfer wealth makes life insurance a significant value, enabling you to:
Create financial protection for your family: Protecting income for your loved ones is valuable in itself. If you were to die prematurely, you want to make sure your family is taken care of financially. That’s the primary purpose of life insurance.
Grow equity with which to supplement future income needs: Should you enjoy a long and healthy life and live well into retirement, permanent life insurance can transition to provide supplemental retirement income. Cash value within the policy grows tax-deferred, and you can access that cash value at any time through withdrawals and loans.*
Leave a legacy to the ones you love: If you want to leave your remaining assets to your loved ones, life insurance may be used as an effective tool for passing wealth on more efficiently. When it comes to transferring our wealth, assets are different. Some assets pass on less than the value we might expect because they are burdened by extra taxes and costs. Annuities, IRAs and tax-qualified accounts suffer from this disadvantage. Other assets can be problematic because their value isn’t stable, such as real estate and stock investments, which fluctuate with the performance of their respective markets.
Life insurance is an asset that can efficiently transfer wealth, offering a unique combination of potential advantages:
- Life insurance offers a predictable death benefit amount that is not linked to market performance.
- The death benefit is paid in cash with no income taxes and potentially no estate taxes subtracted from the amount that is paid to your loved ones.
- The death benefit can be easily divided among several beneficiaries based on how you want the proceeds distributed.
- The death benefit is paid directly to your loved ones without the costs and delays that often impact assets distributed through the probate system.
Life insurance is an asset that can add significant value, even in uncertain economic times. It provides you a competitive rate of return without adding additional risk to your portfolio.
Call me today to see how life insurance can be an integral part of your diversified portfolio.