Life Insurance as a Financial Tool
Wealth Protection
Wealth Accumulation
Wealth Accumulation
- Income replacement
- Disability protection
- Long-term care protection
Wealth Accumulation
Wealth Accumulation
Wealth Accumulation
- Life insurance retirement plans
- Non-qualified executive compensation
Liquidity
Wealth Accumulation
Wealth Transfer
- Estate tax funding
- funding buy-sell agreements
- Key person insurance
Wealth Transfer
Wealth Accumulation
Wealth Transfer
- Annuity maximization
- IRA stretch alternative
- Charitable giving strategies
- Life insurance as an asset class
4 Major Benefits
1. Supplemental Income:
2. Additional Savings or Financial Cushion:
2. Additional Savings or Financial Cushion:
Life insurance cash values can provide clients funds needed for supplemental income purposes during their retirement years. Cash value can be either withdrawn or loaned to the policyholder to provide additional income during retirement.
2. Additional Savings or Financial Cushion:
2. Additional Savings or Financial Cushion:
2. Additional Savings or Financial Cushion:
In general, life insurance contributions are not subject to contribution limits. This allows your clients to build cash value in the policy. Clients can access the policy's cash value via withdrawals or loans, and in most cases, without a penalty for early access.
3. Tax Advantages
4. Family Protection
4. Family Protection
Assets in a life insurance policy grow tax-deferred. Generally, accumulated cash value in a policy can be taken out through tax-free loans and withdrawals up to the cost basis.
4. Family Protection
4. Family Protection
4. Family Protection
The most important aspect of life insurance is that it provides financially for loved ones during a time of loss. This is especially important during the working years. In retirement, life insurance proceeds can pass to beneficiaries and provide for a spouse or beneficiaries.