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Insurance should be part of your portfolio.
29 Reasons To Own Permanent Life Instead of Term
Meet Consumer Preferences - Many
consumers want some amount of life insurance in place when they die.
3 To Support Children with Special Needs – Supporting children with special needs does not end with their college graduation – it lasts for their lifetime.
Life insurance can help meet this need.
4 To Equalize
an Estate – A business owner may want to
leave the family
business to a child-employee without “cutting
5 To Pay Off
a Mortgage – Many consumers will not be mortgage-free in
Consider homes purchased at older
6 To Replace
an Estate – Some consumers may want to spend down assets during
their lifetime while leaving a substantial
7 To Replace
the Value of a Home in a Reverse Mortgage– Insureds
may want to tap into the equity in their home via a
8 To Provide
Cost Recovery for a Dependent Parent or In-Law –The cost
of supporting dependent parents or in-laws
9 To Provide Living Benefits for a Dependent Parent or In-Law – Many permanent life insurance products provide living benefits and
long term care benefits.
10 To Maximize a Pension – A retiree may elect to take the highest (life) payout option on his/her pension, while still wanting to protect
the surviving spouse. Life insurance can help meet this need.
11 To Replace
Social Security at Death – Social
Security benefits do not pass on to the decedent’s surviving children.
12 To Supplement Retirement – The cash value of a life insurance policy can make an excellent retirement supplement.
13 To Provide
Tax Treatment Diversification – Under
current tax regulations, life insurance cash values grow tax-deferred
14 To Provide Creditor Protection – Some state statutes protect policy cash values from the claims of creditors.
15 To Provide
an Asset That is Not Subject to the Alternative Minimum Tax (AMT) –
AMT affects many middle class folks;
16 To Own an
Asset That Is Not a Factor in Determining Eligibility for Financial
Aid – As a
general rule, policy cash value
17 To Provide
Insurance to Unhealthy Individuals Owning Soon To Expire Convertible
Term – Uninsurable or rated clients
Mitigate Taxation of Social Security Benefits – Currently,
income from policy loans does not impact the income
19 To Replace
Income with Respect to a Decedent on Qualified Assets – Tax
deferred accounts, such as qualified
20 To Pay
Estate Taxes – Clients
with larger estates may be subject to substantial estate taxes at
death. Life insurance
21 To Provide
Liquidity to Pay Estate Taxes –Estates of
wealthier clients may contain illiquid assets such as real estate
Leverage a Gift – Annual
exclusion or lifetime gifts can be leveraged up many times by
using them to purchase a
23 To Hold
By-Pass Trust Assets –If the
beneficiary of a by-pass trust does not need (all) the trust
principal, assets can
24 To Replace
a Trust that Terminates at the Death of a Beneficiary – Certain
trusts terminate at the death of the
Leverage a Charitable Gift –A charity
can use relatively small annual gifts and leverage them into a potentially
26 To Replace a Charitable Gift – Clients
may wish to leave certain assets to charity at death. Life
27 To Provide
for Business Continuation –
Permanent life insurance is typically a better solution than
term for funding a
28 To Provide
for Executive Benefits – If
structured properly, policy cash values can be used to fund
29 To Provide
for Repurchase of ESOP Shares – Many
Employee Stock Ownership Plans (ESOPs) require the company