Insure Your Retirement
Many people don’t realize that life insurance represents a unique (and potentially incredibly valuable) option in your overall financial strategy.
How does it work? When properly structured, a life insurance policy can provide several income benefits while you’re still living.
Benefits including:
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Tax-deferred cash value growth potential
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Supplemental retirement income through tax-free policy loans or withdrawals*
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No required minimum distributions (RMDs)
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No 10% penalty tax for accessing policy cash values before age 59 ½
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Financial flexibility – and freedom
Life Events Review
While anytime you’re assessing your overall financial strategy is a good time to consider your life insurance needs, certain life events may trigger the need for an adjustment to your coverage, for example:
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Change in marital status
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New home
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Birth/adoption
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Taking on debt or experiencing a significant change in assets
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Planning for college
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Planning for retirement
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Change in your business, if you’re a business owner
We’re happy to help you review your life insurance coverage at any time.
Types of Life Insurance
Whole Life Insurance
Whole life insurance, sometimes called “permanent” life insurance, lasts for the policyholder’s lifetime, so long as you keep making your premium payments. Whole life insurance encompasses several types, including traditional whole life, universal life and indexed universal life insurance (IUL). In addition to the death benefit, many policies include a “cash value” component that can be tapped during your lifetime. These policies generally cost more than term life insurance.
Term Life Insurance
Term life insurance is designed to provide a death benefit and is only held for a specific period, such as 10, 15 or 20 years, so long as you pay your premiums.
- Policies are based on your age, health and life expectancy.
- Some policies can be renewed after expiration with adjusted premiums.
- It guarantees a death benefit payment if you pass during the specified period.
Term life insurance policies don’t include a “cash value” component, the protection extends only during the life of the policy and they are generally less expensive than whole life insurance.
Assessing Your Needs
Every person’s situation is different. We can help you review your needs and goals and determine which type of life insurance policy is right for you.
Have questions about life insurance and how it might fit into your overall financial strategy? We’d love to discuss it with you! Schedule an appointment today.
Or give us a call at 734.654.6200.
*Policy loans and withdrawals are not usually subject to income tax unless the policy is classified as a modified endowment contract (MEC) under IRC Section 7702A. Policy loans and withdrawals will reduce available cash values and death benefits and may cause the policy to lapse. Additional premium payments may be required to keep the policy in force. In the event of a lapse, outstanding policy loans in excess of unrecovered cost basis will be subject to ordinary income tax. Tax laws are subject to change; consult a tax professional about your personal situation.