| 1 |
Create
an Estate – Life Insurance is the only
product that provides a benefit at the exact time your
family will need it. Where time and other circumstances
may keep you from accumulating sufficient assets to care
for your loved ones, a tax-free death benefit at the time
of death will create an instant estate for your family. |
| 2 |
Pay
Off a Mortgage – Perhaps the most common
usage of life insurance, most people would like to pass
the family residence to their spouse or children free
of any mortgage. A policy can be designed to do just that. |
| 3 |
Pay
Off Loans – Personal or business loans
can be paid off with a well designed Life insurance policy |
| 4 |
Pay
Estate Taxes and Settlement Costs – Estate
taxes can be as high as 50% of your estate depending on
the value of your estate. This is the highest tax in the
USA. Life insurance is a key tool in efficiently transferring
wealth to the next generation. |
| 5 |
Fund
a Business Transfer – Buy-sell agreements
between partners are often designed to transfer a business
at death. The best funding vehicle for this type of agreement
is life insurance. |
| 6 |
Supplement
Retirement Funds – Current insurance products
provide a tax deferred cash accumulation, and access to
cash values on a tax free basis. This type of life insurance
can be designed to provide extra income at retirement |
| 7 |
Protect
a Business From Loss of a Key Employee –
Also known as “Key Man Insurance” this type
of coverage is vital to the long term growth of most businesses.
Key employees are difficult to attract and retain. An
untimely death can cause severe financial strain on the
business. |
| 8 |
Equalize
Inheritance – When the family business
passes to children, insurance is often used to also provide
a benefit to the children who are not in the business. |
| 9 |
Replace
a Charitable Gift – Gifts of appreciated
assets can provide estate tax and income tax benefits
but require giving up ownership of the asset. Life insurance
is often used to replace the value of the donated asset |
| 10 |
College
Fund for Children – Life insurance on a
minor can generate significant cash values which can then
be accessed tax-free to help fund for college |
