What can life insurance do for you? It’s not just about the death benefit
When you reach this stage of life you may be questioning why you need life insurance. If you have children, they are probably all grown up by now and may even have families of their own. Your mortgage might be fully paid and you might feel that you’ve accumulated enough assets to provide for a spouse or other loved ones, should you predecease them.
Well my friends, life insurance is truly one of the best kept secrets and one of the most underutilized asset classes. Depending on your objective, life insurance has many living benefits, not just a death benefit.
Tax Free Retirement Income. When structured properly, it can be a clever way to provide tax-free retirement income. It can help fund a college education for a grandchild or provide help with long term care expenses.
Tax Free Legacy. If your goal is to enjoy a fun-filled retirement, but you would also like to leave money to your loved ones, life insurance may be just the answer. Here is where a professional team (Financial Advisor, CPA and Attorney) working together can help you to create a tax free legacy for your heirs.
One of the worst assets to leave your heirs can be an IRA. Aside from being part your taxable estate these funds are 100% taxable when received. Hopefully, you and your spouse are quite elderly when you die, which means that your heirs are probably at the height of THEIR careers and earning a decent living. The income taxes on these inherited funds can be exorbitant when combined with their working income and other assets. In addition, you may have concerns that one or more of your heirs might blow through the money recklessly. A lifetime of hard earned money gone in a flash.
Using a carefully structured life insurance trust, funded with permanent insurance, may allow you to control to some degree how these funds are received. The life insurance may also significantly INCREASE the value of what you leave behind, all the while spending most of your assets on YOU without worrying about what you leave the kids.
Don’t Procrastinate. The earlier you look into using a life insurance strategy, the better. You do need to qualify and be insurable, but it may not be as hard or as expensive as you think. Also, remember that when you retire, that big life insurance policy you had through your employer will probably retire with you as well.
Have a life insurance audit done of your personally owned policies as well. You may find that they are underfunded. Term policies, even though they were cheap, rarely pay out as they just become too expensive to continue owning. Look into this NOW. Don’t procrastinate.
Questions? Give us a call or send us an email!
(732) 364 5462 Kathy@fffgonline.com
Kathy Nolan is the President and Owner of Family Focus Financial Group and has been in the financial industry for 40 years. Today, Kathy maintains her insurance practice and the fiduciary standard of Investment Advisor Representative, a series 65 licensed registration, with Global Financial Private Capital, an SEC Registered Investment Advisory Firm.
*Investment Advisory Services offered through Global Financial Private Capital, LLC, an SEC Registered Investment Advisor. Global Financial Private Capital and Family Focus Financial Group are not affiliated companies. Not intended for specific legal or tax advice. Any views expressed are for information purposes only and should not be construed in any way as an offer, an endorsement, or an inducement to invest or purchase insurance products.