Life Insurance: What to Look For

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "-17-5. Life Insurance: What to Look For"

Transcription

1 Life Insurance: What to Look For Have you ever thought about buying life insurance? Have you ever puzzled about whether you needed it and if you did, how much to buy? Or what kind? Or how to compare policies? Or who to buy one from? This article will help you sort through these questions to get some answers that may put your mind-and your bank account-at ease. Do You Really Need Life Insurance? Perhaps the best way to approach this is to ask, What does life insurance do? Very simply, it pays a sum of money when somebody (the insured ) dies.

2 Why would you want that? Well, it depends on your situation. Is it possible for someone not to need life insurance? Of course. People without dependent family members, debts, or business interests may simply not need life insurance at all. Also, people with these considerations still may not need life insurance because of the nature of their other assets, their particular circumstances, or their personal financial goals. Life Insurance for Families If you are the major source of your family s support, just about everything your family can buy depends on your income. If you die, your family s income will die with you. Life insurance enables your family to have the things you would have wanted for them and would have provided had you lived. These may include a house, a good education for your children, presents during the holidays and on birthdays, and financial security--in other words: freedom from money worries. Life Insurance to Pay Estate Taxes If you have a larger estate, your property and its income may be sufficient to care for your family. But your loved ones may be faced with quite a different set of tough -18- financial problems. One of the toughest is how to pay federal estate taxes. (See related article on the tax cost of dying.) These taxes can be as much as 55% of your net assets. Even an estate of $3 million can have a tax of about $1.1 million. This tax is payable in cash and is due nine months after the second spouse s death. Since many estates have less than that amount in cash, assets often must be sold. Because of time pressures, costs

3 of a forced sale or an untimely downturn in the market, substantial losses may occur simply from trying to raise the required cash by the tax due date. As a consequence, wealth and opportunity intended to be handed down from one generation to the next may be severely eroded or even lost--perhaps forever. Since life insurance premiums can be leveraged into income and estate tax-free death benefits if properly structured, life insurance can be a very efficient way to provide cash to pay these taxes. Life Insurance for Business Owners If you own a business, you have other concerns that, in one way or another, affect you and your family. For example, if your partner dies, how do you buy his interest from his family? Can you make the purchase payments and still keep the business? Or, if you die, can he buy your interest from your family? How long will the buy-out take? If it would take years, is it a good risk for your family to have that much money tied up in a business that they don t understand or control? In either case, can the value you worked long and hard to build be reduced or even lost entirely because without you or your partner, the business just doesn t run as well? Life insurance integrated into a business buy/sell agreement can provide a solution to these issues. How Much Life Insurance Should You Buy? It depends. Because each person s situation is different, the appropriate amount of life insurance is different too. But even for similar situations, quite different amounts of life insurance may be called for. How much life insurance you should buy can only be found by examining your own financial circumstances and by asking yourself two questions: 1. What do I want to have happen financially when I die? 2. Will it happen? If it won t happen without additional money, life insurance is a way to provide it.

4 -19- Let s return to the family example. Suppose you earn $50,000 per year, are married, and have two children ages 8 and 10. After doing a little financial analysis, you determine that if you died, you would want to pay off your $60,000 mortgage and $12,000 in miscellaneous debts, provide your spouse with an income of $25,000 per year for 20 years, and provide a $40,000 college education fund for each child. After working further on these numbers, you determine that $575,000 in cash and income-producing assets at your death would provide these things. When you subtract the assets you already have (savings, investments, retirement plan funds, etc.) and allow for your spouse s part-time income and family Social Security benefits, you find that you are $230,000 short. That s how much life insurance you need. Let s look at a larger taxable estate. Suppose you are single and your taxable estate is $3 million. Washington state and federal estate taxes total just under $1.1 million for death in 1998 (assuming no previous taxable gifts have been made). Here s how you might use life insurance. First, since life insurance proceeds are paid at death, the event that creates the tax also creates the insurance proceeds of $1.1 million in cash (assuming you buy that much) to pay it. Nothing has to be sold. No waiting. No liquidation losses. And you keep other assets fully invested for higher income and growth. There are no worries that a lack of cash at death will cause problems for your family. The wealth and opportunity you created--or were custodian for--can be handed down as you intended. Second, tax leverage can be created because of the tax treatment that applies to life insurance. Here s how it works. Dollars can be gifted to a special trust (an irrevocable life insurance trust ). Done properly, no gift or future estate taxes are payable. The trust uses the dollars to buy life insurance. At death, the life insurance is paid income tax free and estate tax free to the trust. The money in the trust can then be loaned to the estate or used to buy property from the estate to provide cash for payment of estate taxes. In essence, dollars are removed from the estate and used to buy more dollars for the family. The after-tax internal rate of return on these dollars is substantial because of the leverage.

5 -20- Now let s look at the third business owner situation. Suppose you and a partner each own half of a business worth $500,000. Life insurance can be used to fund a buy/sell agreement with your partner. If you die, the business (or your partner) gets $250,000 of insurance proceeds, income tax free, and buys your half of the business from your family. Your family gets cash and no risk. Your partner gets the business free and clear. The transaction is simple and straightforward and both sides are able to walk away from the tragedy at least financially intact. What Kinds of Life Insurance Are There? There are many types of life insurance products available and they all boil down to two basic categories: term insurance and permanent or cash value insurance. Permanent insurance can be purchased in the form of whole life, universal life, or variable life. They differ in how much money you might project to pay for them and what level of guarantees the insurance carrier will give you. Payments are called premiums. All life insurance premiums are affected by the insured s age, sex and (usually) health situation. The older you are, the higher the premium for the obvious reason that more people die as they get older. Women pay less than men because statistically women live longer. When starting out, term insurance offers the lowest premiums at any age and for any amount of coverage. However, pure term insurance has premiums that go up, often

6 each year. After age 55, the rate of increase from year to year becomes steep. At older ages, the periodic increases are often so large that it becomes unaffordable. Cash value insurance premiums start out higher than term insurance. Eventually these premiums will be lower than for term coverage. The initial difference between the cash value premium and the premium for the same amount of term insurance goes into a form of savings within the insurance company called cash value. The insurance company credits interest or dividends to the cash value account, which usually is sheltered from income tax. Over the years this cash value can accumulate to a sizable amount. The cash value fund is what helps stabilize premiums in future policy years. In many policies, the income from the fund in later years can be large enough to pay the entire premium amount for you tax free. If the insurance is cancelled, the policy owner can get some--or all--of the premiums back when the cash value is surrendered. To enjoy these benefits, you have to pay higher premiums up front and plan to keep the policy for a number of years What Kind of Life Insurance Should You Buy? It depends on your answers to several questions. First, you have to know how much you need. Next, you have to know how long you re going to need it. Last, you have to decide how much you want to (or can) pay for premiums. When you have answers to these questions, the kind of insurance that is best for you is not difficult to determine. Here are some basic rules: 1. If you need a lot of protection but don t have much money, buy term insurance. Period. 2. If you need coverage for 8 to 10 years or less (and after that won t need it), then term insurance is still almost always the best.

7 3. If you need life insurance for many years, as in a situation involving an established business or in funding estate taxes, then cash value insurance is more effective. 4. If you, your spouse, and your advisors have concluded that using life insurance to pay estate taxes is appropriate, and if you decide to pay those taxes at the second death, survivorship second to die insurance may be advisable. Where Can You Buy Life Insurance? There are four primary sources: Through an Employer. Most employers provide group life insurance benefits to employees. Sometimes these plans will permit you to buy additional supplemental life coverage on yourself or even family members through a payroll deduction. Individual and (most) association groups typically require evidence of insurability. However, that is frequently not true for employee group plans--at least up to some guarantee issue level of coverage. If you have health history problems, you may be able to get coverage through your employer but not on your own. Through Associations. Many national, regional, or even local associations offer life insurance plans to their membership From Agents or Brokers. Typically, these are commissioned salespersons who are licensed by the state to sell insurance. Agents usually represent one insurance company, at least primarily. Brokers typically represent several or even many different insurance carriers. Either can be helpful in evaluating needs and policies and related planning for your particular circumstances.

8 Financial Planners or Investment Advisors. Many financial planners or investment advisors are also licensed as insurance agents or brokers. Both frequently work closely with insurance specialists who are brought in to offer appropriate insurance solutions for their clients. How do You Buy Life Insurance? In a word--carefully. Here are some rules and a recap of some of the key points in this article. First, determine if you need life insurance to give your family or business the financial guarantees you want in the event of your death. Second, determine how much, together with other assets, is needed to do the job. Third, determine how long you re likely to need the insurance. Will it be a short time--until you pay off some debt or accumulate a college fund? Or will it be permanent until your death, when estate taxes are due? Fourth, determine what kind of insurance (term or cash value) is called for based upon the how much and how long questions above and considering how much premium you can afford. Many families and businesses find a mix of term and cash value insurance works well. Fifth, determine what sources are available to you to buy insurance.

9 -23- Sixth, shop. Shop for an agent or broker, if that s the service you decide to use. Ask friends or advisors who they use and would recommend. Shop for comparable policies--or ask your agent or broker to do this. All products--even those that sound like the same type--are not always the same. In fact, pricing--and what you actually get for the price paid--can vary substantially. Ask your agent or broker to provide all pages of the NAIC (National Association of Insurance Commissioners) approved insurance illustration so that you can understand how different variations of product structure will impact policy performance and guarantees. Seventh, coordinate. Always make sure your agent or broker talks with your attorney, CPA, or trust officer. And ask that they communicate back. If one advisor misses something, the others are likely to catch it. And that will benefit you.

Life Insurance Buyer's Guide

Life Insurance Buyer's Guide Life Insurance Buyer's Guide This guide can help you get the most for your money when you shop for life insurance. It can help you answer questions about: Buying Life Insurance Deciding How Much You Need

More information

Income, Gift, And Estate Tax Planning With Life Insurance. Farhad Aghdami Williams Mullen Richmond, Virginia

Income, Gift, And Estate Tax Planning With Life Insurance. Farhad Aghdami Williams Mullen Richmond, Virginia Income, Gift, And Estate Tax Planning With Life Insurance Farhad Aghdami Williams Mullen Richmond, Virginia Income, Gift, And Estate Tax Planning With Life Insurance Farhad Aghdami Williams, Mullen, Clark

More information

Life Insurance Buyer's Guide Prepared by the National Association of Insurance Commissioners

Life Insurance Buyer's Guide Prepared by the National Association of Insurance Commissioners Life Insurance Buyer's Guide Prepared by the National Association of Insurance Commissioners Buying Life Insurance How much do you need? What is the Right Kind? Finding a Low Cost Policy Things to Remember

More information

Split Dollar Life Insurance is possible because a permanent Life Insurance policy has two main components to it: a Death Benefit and a Cash Value.

Split Dollar Life Insurance is possible because a permanent Life Insurance policy has two main components to it: a Death Benefit and a Cash Value. Insuring the Future In this Newsletter: Split Dollar Insurance Conventional and Reverse Split Dollar Arrangements Benefits of a Split Dollar Arrangement Types of Split Dollar Arrangements Buy/sell Split

More information

LIFE INSURANCE OVERVIEW

LIFE INSURANCE OVERVIEW LIFE INSURANCE OVERVIEW Most people think of life insurance in terms of death benefit protection. However, today s policies also provide the vehicles for meeting other goals, such as saving for retirement

More information

2) You must then determine how much of the risk you are willing to assume.

2) You must then determine how much of the risk you are willing to assume. CHAPTER 4 Life Insurance Structure, Concepts, and Planning Strategies Where can you make a Simpler living as a needs financial planner? 1) Wealthy clients have a much higher profit margin. The challenge

More information

Life Insurance Life Advice

Life Insurance Life Advice Life Insurance Life Advice What to look for in life insurance Deciding to protect those who depend on us with a sufficient amount of life insurance protection is a responsible and caring act. Life insurance

More information

Fixed Deferred Annuities

Fixed Deferred Annuities Buyer Buyer s Guide to: s Guide to: Fixed Deferred Annuities Prepared by the Prepared by the National Association of Insurance Commissioners The National Association of Insurance Commissioners is an association

More information

Life Insurance Buyer s Guide

Life Insurance Buyer s Guide Page 1 of 5 Life Insurance Buyer s Guide Illinois This guide can show you how to save money when you shop for life insurance. It helps you to: Decide how much life insurance you should buy, Decide what

More information

The New Era of Wealth Transfer Planning #1. American Taxpayer Relief Act Boosts Life Insurance. For agent use only. Not for public distribution.

The New Era of Wealth Transfer Planning #1. American Taxpayer Relief Act Boosts Life Insurance. For agent use only. Not for public distribution. The New Era of Wealth Transfer Planning #1 American Taxpayer Relief Act Boosts Life Insurance For agent use only. Not for public distribution. In January 2013 Congress stepped back from the fiscal cliff

More information

Prepared by the National Association of Insurance Commissioners. This guide does not endorse any company or policy.

Prepared by the National Association of Insurance Commissioners. This guide does not endorse any company or policy. Prepared by the National Association of Insurance Commissioners The National Association of Insurance Commissioners is an association of state insurance regulatory officials. This association helps the

More information

Life Insurance Buyer s Guide

Life Insurance Buyer s Guide Life Insurance Buyer s Guide This guide can show you how to save money when you shop for life insurance. It helps you to: - Decide how much life insurance you should buy, - Decide what kind of life insurance

More information

Life Insurance Gifts: Planning Considerations

Life Insurance Gifts: Planning Considerations Life Insurance Gifts: Planning Considerations Gifts of life insurance are an additional option for charitable giving. While life insurance is not the answer to every financial planning and estate planning

More information

20 Ways to Reduce and Effectively Use Insurance Premiums

20 Ways to Reduce and Effectively Use Insurance Premiums Free Review: Compliments of YourBusinessLibrary.com For Your Individual Use Only The Business Library Resource Report #41 20 Ways to Reduce and Effectively Use Insurance Premiums Getting the Most Bang

More information

Life Insurance Buyer s Guide

Life Insurance Buyer s Guide Life Insurance Buyer s Guide This guide can help you when you shop for life insurance. It discusses how to: Find a Policy The Meets Your Needs and Fits Your Budget Decide How Much Insurance You Need Make

More information

Term Life vs. Permanent Life Insurance

Term Life vs. Permanent Life Insurance Term Life vs. Permanent Life Insurance Should I Buy Term or Permanent? A widow doesn t ask What kind of insurance was it - Whole Life, Universal Life or Term? She asks How much do I have to raise my family?

More information

Protect your business and enhance your financial security. Business Insurance Strategies

Protect your business and enhance your financial security. Business Insurance Strategies Protect your business and enhance your financial security Business Insurance Strategies Ensure your financial security There are often distinct advantages to being a significant shareholder in a private

More information

Life Insurance Buyer s Guide

Life Insurance Buyer s Guide United of Omaha Life Insurance Company Life Insurance Buyer s Guide Prepared by the National Association of Insurance Commissioners The National Association of Insurance Commissioners is an association

More information

Life Insurance Buyer s Guide

Life Insurance Buyer s Guide Life Insurance Buyer s Guide This guide can show you how to save money when you shop for life insurance. It helps you to: - Decide how much life insurance you should buy, - Decide what kind of life insurance

More information

Life Insurance Buyer s Guide

Life Insurance Buyer s Guide Life Insurance Buyer s Guide This guide can help yyou ou when yyou ou shop for life insurance. It discusses ho w to: how Find a Policy That Meets Your Needs and Fits Your Budget Decide How Much Insurance

More information

Do You Have the Right Life Insurance?

Do You Have the Right Life Insurance? Do You Have the Right Life Insurance? Having adequate life insurance should be an important part of your financial planning. The type(s) you choose will depend on your needs and goals. Life insurance was

More information

Chapter 10. Life Insurance

Chapter 10. Life Insurance Life Insurance Role of Life Insurance Insurance Program A life insurance program should be an integral part of the overall estate plan. The estate planner should review all of the forest owner s policies,

More information

LPL INSURANCE ASSOCIATES. Taking Care of Business. Insurance Strategies to Help You Protect Your Business

LPL INSURANCE ASSOCIATES. Taking Care of Business. Insurance Strategies to Help You Protect Your Business LPL INSURANCE ASSOCIATES Taking Care of Business Insurance Strategies to Help You Protect Your Business Opportunities, Rewards and Responsibilities Not many business owners want to think about the time

More information

Buyer s Guide for Deferred Annuities Variable

Buyer s Guide for Deferred Annuities Variable Buyer s Guide for Deferred Annuities Variable Prepared by the NAIC National Association of Insurance Commissioners This guide does not endorse any company or policy Reprinted by John Hancock Life Insurance

More information

Life Insurance and Estate Planning

Life Insurance and Estate Planning EBNY Financial, LLC Kevin Kautzmann, CFP Certified Financial Planner 80 Fifth Avenue #1403 New York, NY 212-269-2625 kevin@ebnyfinancial.com www.ebnyfinancial.com Life Insurance and Estate Planning Page

More information

Life Insurance Basics

Life Insurance Basics Craig Chapman, CFP Director - Investments 500 108th Avenue NE Suite 2100 Bellevue, WA 98004 425-709-0520 craig.chapman@opco.com http://fa.opco.com/craig.chapman/ Life Insurance Basics Page 2 of 9 Life

More information

IRREVOCABLE LIFE INSURANCE TRUSTS FOR ESTATE AND TAX PLANNING (Estate Planning Advisory No. 1)

IRREVOCABLE LIFE INSURANCE TRUSTS FOR ESTATE AND TAX PLANNING (Estate Planning Advisory No. 1) IRREVOCABLE LIFE INSURANCE TRUSTS FOR ESTATE AND TAX PLANNING (Estate Planning Advisory No. 1) This Advisory discusses the general estate planning and asset protection benefits of an irrevocable life insurance

More information

Passing on the Good Stuff! Implementing a Roth IRA Conversion Using Life Insurance

Passing on the Good Stuff! Implementing a Roth IRA Conversion Using Life Insurance Passing on the Good Stuff! Implementing a Roth IRA Conversion Using Life Insurance Passing On The Good Stuff! All inheritances aren t equal. Even two different assets that are worth similar amounts may

More information

Consumer s Guide to. Life. Insurance. James J. Donelon, Commissioner

Consumer s Guide to. Life. Insurance. James J. Donelon, Commissioner Consumer s Guide to Life Insurance Louisiana Department of Insurance James J. Donelon, Commissioner 1 A message from Commissioner of Insurance Jim Donelon Recent studies show that, while individuals may

More information

Estate Tax Concepts. for Edward and Tina Collins

Estate Tax Concepts. for Edward and Tina Collins Estate Tax Concepts for Edward and Tina Collins Joseph Davis, CLU, ChFC 215 Broad Street Charlotte, North Carolina 26292 Phone: 704-927-5555 Mobile Phone: 704-549-5555 Fax: 704-549-6666 Email: joseph.davis@aol.com

More information

Life Insurance as an Employee Benefit

Life Insurance as an Employee Benefit Life Insurance as an Employee Benefit What is it? Life insurance is a contract whereby the insurance company pays a sum specified within the contract to a named beneficiary upon the death of the insured,

More information

Purpose Driven Life Insurance

Purpose Driven Life Insurance Purpose Driven Life Insurance American National Insurance Company Galveston, TX Has someone ever called you on the phone and tried to sell you life insurance or another product without knowing anything

More information

Deciphering Life Insurance Options: How Choosing the Right Policy Can Help Safeguard Your Earning Potential and Savings

Deciphering Life Insurance Options: How Choosing the Right Policy Can Help Safeguard Your Earning Potential and Savings How Choosing the Right Policy Can Help Safeguard Your Earning Potential and Savings 1 Many people think of life insurance as something they ll need when they get a bit older and want to ensure their loved

More information

A CONSUMER GUIDE TO LIFE SETTLEMENTS

A CONSUMER GUIDE TO LIFE SETTLEMENTS A CONSUMER GUIDE TO LIFE SETTLEMENTS IAGLSA-ID-BROC 1.0 Page 1 Maximizing the Value of Your Life Policy Building the Foundation of Trust IAG Life Settlement Advisors is committed to its clients, first

More information

Fixed Deferred Annuities

Fixed Deferred Annuities Buyer s Guide to: Fixed Deferred Annuities National Association of Insurance Commissioners 2301 McGee St Suite 800 Kansas City, MO 64108-2604 (816) 842-3600 1999, 2007 National Association of Insurance

More information

Life Insurance Buyer s Guide

Life Insurance Buyer s Guide Life Insurance Buyer s Guide This guide can help you when you shop for life insurance. It discusses how to: Find a policy That Meets Your Needs and Fits Your Budget Decide How Much Insurance You Need Make

More information

BUYER S GUIDE TO FIXED DEFERRED ANNUITIES

BUYER S GUIDE TO FIXED DEFERRED ANNUITIES BUYER S GUIDE TO FIXED DEFERRED ANNUITIES IT IS IMPORTANT that you understand the differences among various annuities so you can choose the kind that best fits your needs. This guide focuses on fixed deferred

More information

Tax Status. FS928e-12

Tax Status. FS928e-12 Estate Planning Series 1 FS928e-12 Life Insurance: An Estate Planning Tool Adapted for South Dakota audiences by David Rezac, School of Law graduate student, University of South Dakota, Anne Marie Feiock,

More information

Funding Your Buy-Sell Agreement with Life Insurance

Funding Your Buy-Sell Agreement with Life Insurance Element Insurance Partners 13520 California Street Suite 290 Omaha, NE 68154 402-614-2661 dhenry@elementinsurancepartners.com www.elementinsurancepartners.com Funding Your Buy-Sell Agreement with Life

More information

through life insurance strategies

through life insurance strategies through life insurance strategies T he purchase of a life insurance policy should go through the same careful analysis that goes into making any investment decision. After a careful examination of your

More information

Life Insurance Basics

Life Insurance Basics EBNY Financial, LLC Kevin Kautzmann, CFP Certified Financial Planner 80 Fifth Avenue #1403 212-269-2625 kevin@ebnyfinancial.com www.ebnyfinancial.com Life Insurance Basics July 08, 2014 Page 1 of 9, see

More information

Sales Strategy Sale to a Grantor Trust (SAGT)

Sales Strategy Sale to a Grantor Trust (SAGT) Estate planners have been using the Irrevocable Life Insurance Trust (ILIT) for many years, to increase wealth and liquidity outside the taxable estate. 1 However, transfers to ILITs One effective technique

More information

Life Insurance Buyer's Guide

Life Insurance Buyer's Guide Life Insurance Buyer's Guide This guide can help you when you shop for life insurance. It discusses how to: Find a Policy That Meets Your Needs and Fits Your Budget Decide How Much Insurance You Need Make

More information

afe Money Concepts James Schultz From Badger Insurance

afe Money Concepts James Schultz From Badger Insurance afe Money Concepts James Schultz From Badger Insurance 220 Grant Street, Fort Atkinson, WI 53538 Phone: (920) 563-2478 Email: jimschultz@badgerbank.com INTRODUCTION It s hard to say where and when most

More information

Managing mortality risk with life insurance diversification

Managing mortality risk with life insurance diversification Managing mortality risk with life insurance diversification Diversification is an important strategy for mitigating investment loss by selectively combining noncorrelated assets in an investment portfolio.

More information

Life100 NWL. Life100. A Comprehensive Universal Life Product. NWL Life 100 an easy, affordable way to take care of all your family and business needs

Life100 NWL. Life100. A Comprehensive Universal Life Product. NWL Life 100 an easy, affordable way to take care of all your family and business needs Life100 NWL Life100 Policy Form 01-1121-08 and state variations A Comprehensive Universal Life Product SA-9255.Rev.10.08 NWL Life 100 an easy, affordable way to take care of all your family and business

More information

Insured Annuities: Beyond the Basics

Insured Annuities: Beyond the Basics Insured Annuities: Beyond the Basics Achieving a great after-tax return on fixed-income assets John M. Nicola, CLU, CHFC, CFP Table of Contents Introduction.................................. 3 Insured

More information

Caring for longer than a lifetime

Caring for longer than a lifetime Life insurance Caring for longer than a lifetime Your 5-minute Guide Life goes on prepare for it Your love for your family will live forever. However, we all know we won t live forever. Life insurance

More information

BUYER S GUIDE TO FIXED DEFERRED ANNUITIES

BUYER S GUIDE TO FIXED DEFERRED ANNUITIES BUYER S GUIDE TO FIXED DEFERRED ANNUITIES Prepared by the National Association of Insurance Commissioners The National Association of Insurance Commissioners is an association of state insurance regulatory

More information

CORPORATE RETIREMENT STRATEGY ADVISOR GUIDE. *Advisor USE ONLY

CORPORATE RETIREMENT STRATEGY ADVISOR GUIDE. *Advisor USE ONLY CORPORATE RETIREMENT STRATEGY ADVISOR GUIDE *Advisor USE ONLY TABLE OF CONTENTS Introduction to the corporate retirement strategy...2 Identify the opportunity - target markets... 3 Policy ownership: corporate

More information

Annuities. Products. Safe Money. that Stimulate Financial Growth & Preserve Wealth. Safe Money is for money you cannot afford to lose.

Annuities. Products. Safe Money. that Stimulate Financial Growth & Preserve Wealth. Safe Money is for money you cannot afford to lose. Annuities Safe Money Products that Stimulate Financial Growth & Preserve Wealth Safe Money is for money you cannot afford to lose. Learn why Annuities are considered to be a Safe Money Place and how these

More information

Life Insurance Made Easy The basics on buying Life Insurance

Life Insurance Made Easy The basics on buying Life Insurance Life Insurance Made Easy The basics on buying Life Insurance Introduction Hi There! Before you begin reading, I d like to take the time out to truly thank you for downloading this guide. There is A LOT

More information

LIFE INSUfW[E AND ANNUITIES

LIFE INSUfW[E AND ANNUITIES ESO 455 No. 6 LIFE INSUfW[E AND ANNUITIES When developing a sound insurance program a person must face the possibilities of dying too soon or living too long. Very few people will die at the "right time,"

More information

Buyer s Guide for. Deferred Annuities

Buyer s Guide for. Deferred Annuities Buyer s Guide for Deferred Annuities Prepared by the NAIC National Association of Insurance Commissioners The National Association of Insurance Commissioners is an association of state insurance regulatory

More information

The Navigator. Fall 2015 Issue 5. Life Insurance: A Risk Mitigation Tool that Should Not be Considered an Investment

The Navigator. Fall 2015 Issue 5. Life Insurance: A Risk Mitigation Tool that Should Not be Considered an Investment The Navigator A Financial Planning Resource from Pekin Singer Strauss Asset Management Fall 2015 Issue 5 Life insurance can be a highly effective risk management tool that should have a place in most Americans

More information

Irrevocable Life Insurance Trust

Irrevocable Life Insurance Trust What exactly is an ILIT? An ILIT, like most trusts, is simply a holding device. It owns your life insurance policy for you, removing it from your estate. As its name suggests, the ILIT is irrevocable.

More information

Irrevocable Life Insurance Trust

Irrevocable Life Insurance Trust Davis & Graves CPA LLP Jerry Davis, CPA/PFS 700 N Main Gresham, OR 97009 503-665-0173 jerryd@davisgraves.com www.jjdcpa.com Irrevocable Life Insurance Trust Page 1 of 9, see disclaimer on final page Irrevocable

More information

Your guide to participating life insurance SUN PAR PROTECTOR SUN PAR ACCUMULATOR

Your guide to participating life insurance SUN PAR PROTECTOR SUN PAR ACCUMULATOR Your guide to participating life insurance SUN PAR PROTECTOR SUN PAR ACCUMULATOR Participate in your brighter future with Sun Life Financial. Participating life insurance is a powerful tool that protects

More information

Estate Planning. Insured Inheritance. Income Shelter. Insured Annuity. Capital Gains Protector

Estate Planning. Insured Inheritance. Income Shelter. Insured Annuity. Capital Gains Protector Estate Planning Insured Inheritance The Insured Inheritance concept demonstrates an opportunity to shelter a lump sum investment from income tax and to ensure that the maximum tax-free dollars become available

More information

NAIC Buyer s Guide for Fixed Deferred Annuities

NAIC Buyer s Guide for Fixed Deferred Annuities NAIC Buyer s Guide for Fixed Deferred Annuities It s important that you understand how annuities can be different from each other so you can choose the type of annuity that s best for you. The purpose

More information

Preserving value for the next generation. Lincoln LifeLINC Advisor Guide. For agent or broker use only. Not for use with the public.

Preserving value for the next generation. Lincoln LifeLINC Advisor Guide. For agent or broker use only. Not for use with the public. Preserving value for the next generation Lincoln LifeLINC Advisor Guide For agent or broker use only. Not for use with the public. Contents Wealth transfer planning 2 Connect your clients to the Lincoln

More information

NAIC Buyer s Guide for Deferred Annuities

NAIC Buyer s Guide for Deferred Annuities NAIC Buyer s Guide for Deferred Annuities Prepared by the National Association of Insurance Commissioners The National Association of Insurance Commissioners is an association of state insurance regulatory

More information

White Paper: Using Cash Value Life Insurance for Retirement Savings

White Paper: Using Cash Value Life Insurance for Retirement Savings White Paper: Using Cash Value Life Insurance for Retirement Savings www.selectportfolio.com Toll Free 800.445.9822 Tel 949.975.7900 Fax 949.900.8181 Securities offered through Securities Equity Group Member

More information

Maximize Your Pension with Life Insurance

Maximize Your Pension with Life Insurance Maximize Your Pension with Life Insurance How Death Benefit Protection Can Help You Get the Most Out of Your Pension Benefits Client Brochure Achieve financial protection while maximizing your pension

More information

Life Insurance as an Asset Class: A Predictable Asset for Unpredictable Times

Life Insurance as an Asset Class: A Predictable Asset for Unpredictable Times Life Insurance as an Asset Class: A Predictable Asset for Unpredictable Times This material is not intended to be used to avoid tax penalties. It was prepared to support the promotion or marketing of the

More information

Life insurance. Shedding light on. a practical guide to helping you achieve a lifetime of financial security

Life insurance. Shedding light on. a practical guide to helping you achieve a lifetime of financial security Shedding light on Life insurance a practical guide to helping you achieve a lifetime of financial security Learn more about: Safeguarding your loved ones Protecting your future Ensuring your dreams live

More information

Like all other permanent (cash value) policies, a whole life policy contains the following features:

Like all other permanent (cash value) policies, a whole life policy contains the following features: Whole Life What is it? Permanent (cash value) life insurance Whole life insurance is called permanent protection, meaning the coverage (and possibly the premiums) lasts for your entire (whole) life, as

More information

Understanding Annuities

Understanding Annuities This guide: Explains the different types of annuity contracts Describes the various contractual features Discusses how to shop for an annuity State of Wisconsin Office of the Commissioner of Insurance

More information

Understanding Life Insurance

Understanding Life Insurance Understanding Life Insurance A Lesson in Traditional and Indexed Life Insurance 2012 VSA, LP Valid only if used prior to January 1, 2013. The information, general principles and conclusions presented in

More information

ADVISING CLIENTS ABOUT LIFE INSURANCE: A PRIMER 1. By Andrew J. Willms, J.D. LL.M. John C. Zimdars, Jr., CLU ChFC. Introduction

ADVISING CLIENTS ABOUT LIFE INSURANCE: A PRIMER 1. By Andrew J. Willms, J.D. LL.M. John C. Zimdars, Jr., CLU ChFC. Introduction ADVISING CLIENTS ABOUT LIFE INSURANCE: A PRIMER 1 By Andrew J. Willms, J.D. LL.M. John C. Zimdars, Jr., CLU ChFC Introduction Over the last several years, tax reform has made tax planning increasingly

More information

Buyer s Guide for. Deferred Annuities. For personal, non-commercial use only.

Buyer s Guide for. Deferred Annuities. For personal, non-commercial use only. Buyer s Guide for Deferred Annuities Prepared by the NAIC National Association of Insurance Commissioners The National Association of Insurance Commissioners is an association of state insurance regulatory

More information

For those who prefer choice over chance

For those who prefer choice over chance Destiny insurance For those who prefer choice over chance Make the decisions that will control your destiny Destiny * insurance is universal life insurance that provides a broad spectrum of choices to

More information

A CONSUMER GUIDE TO LIFE SETTLEMENTS

A CONSUMER GUIDE TO LIFE SETTLEMENTS A CONSUMER GUIDE TO LIFE SETTLEMENTS Open Life Settlements 866.877.4054 Maximizing the Value of Your Life Policy Your unwanted life insurance policy can be an incredible asset. Open Life Settlements can

More information

How Much Life Insurance Do You Need?

How Much Life Insurance Do You Need? RON GRAHAM AND ASSOCIATES LTD. 10585 111 Street NW, Edmonton, Alberta, T5M 0L7 Telephone (780) 429-6775 Facsimile (780) 424-0004 Email rgraham@rgafinancial.com How Much Life Insurance Do You Need? In Canada,

More information

LIFE INSURANCE PROBLEMS AND SOLUTIONS: A NON-AGENT PERSPECTIVE 1

LIFE INSURANCE PROBLEMS AND SOLUTIONS: A NON-AGENT PERSPECTIVE 1 : A NON-AGENT PERSPECTIVE 1 By: Richard B. Freeman, CFP Life insurance can be an important component of a comprehensive financial plan. However, problems related to life insurance can arise for a variety

More information

We keep our promises.

We keep our promises. We keep our promises. So you can keep yours. It s a selfless act. The decision you make today is for someone else s future. Purchasing life insurance is about more than just planning for the future. It

More information

Life Insurance for Estate Taxes THE SIMPLEST SOLUTION TO AN ESTATE TAX PROBLEM

Life Insurance for Estate Taxes THE SIMPLEST SOLUTION TO AN ESTATE TAX PROBLEM Life Insurance for Estate Taxes THE SIMPLEST SOLUTION TO AN ESTATE TAX PROBLEM M any successful individuals are shocked to learn that the federal estate tax may consume as much as 45% of their accumulated

More information

CREATE TAX ADVANTAGED RETIREMENT INCOME YOU CAN T OUTLIVE. create tax advantaged retirement income you can t outlive

CREATE TAX ADVANTAGED RETIREMENT INCOME YOU CAN T OUTLIVE. create tax advantaged retirement income you can t outlive create tax advantaged retirement income you can t outlive 1 Table Of Contents Insurance Companies Don t Just Sell Insurance... 4 Life Insurance Investing... 5 Guarantees... 7 Tax Strategy How to Get Tax-Free

More information

What You should Know. About Buying Life Insurance. Life insurance protects your financial future. It provides

What You should Know. About Buying Life Insurance. Life insurance protects your financial future. It provides Life insurance protects your financial future. It provides the resources your family or business may need to pay immediate and continuing expenses when you die. What You should Know About Buying Life Insurance

More information

Life Insurance. The Benefits of Protection and Preparation

Life Insurance. The Benefits of Protection and Preparation Life Insurance The Benefits of Protection and Preparation life insurance,in all its varied forms, is quite simply a method for handling financial risk in the event of death. Instead of trying to amass

More information

Life Insurance Basics

Life Insurance Basics Next Plateau Consulting LLC Frank Washelesky 455 N. Cityfront Plaza Dr. NBC Tower - Suite 2600 Chicago, IL 60611-5379 312-670-0500 fwashelesky@next-plateau.com www.next-plateau.com Life Insurance Basics

More information

TOP 20 USES FOR LIFE INSURANCE In Estate, Business Succession, and Financial Planning

TOP 20 USES FOR LIFE INSURANCE In Estate, Business Succession, and Financial Planning TOP 20 USES FOR LIFE INSURANCE In Estate, Business Succession, and Financial Planning Permanent life insurance is not just about death benefits. It s an essential tool in estate, business succession, and

More information

Understanding Life Insurance: A Lesson in Life Insurance

Understanding Life Insurance: A Lesson in Life Insurance Understanding Life : A Lesson in Life If something happens to you, how will your family replace your earning power? Table of Contents Page Your Earning Power 2 Life Questions 3 Types of Term 4 Term Variations

More information

Life Insurance. A Consumer s Guide to INSURANCE FACTS. for Pennsylvania Consumers. 1-877-881-6388 Toll-free Automated Consumer Line

Life Insurance. A Consumer s Guide to INSURANCE FACTS. for Pennsylvania Consumers. 1-877-881-6388 Toll-free Automated Consumer Line INSURANCE FACTS for Pennsylvania Consumers A Consumer s Guide to Life Insurance 1-877-881-6388 Toll-free Automated Consumer Line www.insurance.state.pa.us Pennsylvania Insurance Department Website Buying

More information

A Corporate Insured Stock Redemption Disability Buy-Sell Plan

A Corporate Insured Stock Redemption Disability Buy-Sell Plan A Corporate Insured Stock Redemption Disability Buy-Sell Plan A business owner s disability can have some very real practical consequences leading to problems for the owner, the owner's family, and for

More information

Methods of Giving. Create Your Texas A&M Legacy GIVING

Methods of Giving. Create Your Texas A&M Legacy GIVING Methods of Giving Create Your Texas A&M Legacy GIVING What is the Texas A&M Foundation? Founded in 1953, the Texas A&M Foundation is a nonprofit organization that encourages major gifts and manages endowments

More information

instant insurance risk tolerance and tax needs are carefully considered.

instant insurance risk tolerance and tax needs are carefully considered. instant insurance by david wm. brown, a partner at Al G. Brown & Associates in Toronto & george weinberger, a former tax partner with KPMG. advisorsedge@rmpublishing.com Immediate Financing Arrangements

More information

Understanding Annuities

Understanding Annuities This guide: Explains the different types of annuity contracts Describes the various contractual features Discusses how to shop for an annuity State of Wisconsin Office of the Commissioner of Insurance

More information

TERM OR PERMANENT LIFE INSURANCE

TERM OR PERMANENT LIFE INSURANCE TERM OR PERMANENT LIFE INSURANCE WHICH OPTION IS RIGHT FOR YOU? It s the age-old life insurance question: Should you buy term or permanent life insurance? Some personal finance experts would have you believe

More information

Life. The Instant Insurance Guide: A buyer s guide to life insurance and annuities in Delaware. www.delawareinsurance.gov

Life. The Instant Insurance Guide: A buyer s guide to life insurance and annuities in Delaware. www.delawareinsurance.gov The Instant Insurance Guide: Life A buyer s guide to life insurance and annuities in Delaware From Karen Weldin Stewart, CIR-ML Delaware s Insurance Commissioner 1-800-282-8611 www.delawareinsurance.gov

More information

Life. The Instant Insurance Guide: Questions To Ask About Life Insurance. A buyer s guide to life insurance and annuities in Delaware

Life. The Instant Insurance Guide: Questions To Ask About Life Insurance. A buyer s guide to life insurance and annuities in Delaware Questions To Ask About Life Insurance What are your goals? Do you want to replace the income you bring in to your family? Pay off debts and taxes? Pay for a child s education? Donate to charity? Term or

More information

ROTH IRAS: IS THERE A CONVERSION IN YOUR FUTURE? SHOULD THERE BE?

ROTH IRAS: IS THERE A CONVERSION IN YOUR FUTURE? SHOULD THERE BE? KRISTI MATHISEN, JD AND CPA Who would have imagined that one of the hottest investment questions in years for individuals, tax professionals, financial planners and investment advisors would be about the

More information

The Need for Life Insurance

The Need for Life Insurance Page 1 of 5 From Jared Adams Condie & Adams, PLLC 603 4th Avenue, Suite 200 Kirkland, WA 98033 4254501040 Volume 2, Issue 2 Planning for the New "Zero Percent" Tax Bracket The Need for Life Insurance Condie

More information

Preserve what you spent a lifetime creating

Preserve what you spent a lifetime creating An Overview Guide for Consumers Preserve what you spent a lifetime creating A look at MassMutual Survivorship Whole Life insurance Insurance Strategies Contents 1 Life insurance that works as hard as you

More information

Understanding Life Insurance: A Lesson in Life Insurance

Understanding Life Insurance: A Lesson in Life Insurance Understanding Life : A Lesson in Life If something happens to you, how will your family replace your earning power? Table of Contents Page Your Earning Power 2 Life Questions 3 Types of Term 4 Term Variations

More information

Buyer s Guide for. Deferred Annuities. Fixed

Buyer s Guide for. Deferred Annuities. Fixed Buyer s Guide for Deferred Annuities Fixed Prepared by the NAIC National Association of Insurance Commissioners The National Association of Insurance Commissioners is an association of state insurance

More information

Understanding Life Insurance: A Lesson in Life Insurance

Understanding Life Insurance: A Lesson in Life Insurance Understanding Life Insurance: A Lesson in Life Insurance If something happens to you, how will your family replace your earning power? Table of Contents Page Your Earning Power 2 Life Insurance Questions

More information