Insurance Planning

Life Insurance

Let’s design a strategy if you:

·         Live too long

·         Die too soon

·         Get sick along the way

·         Want a tax free retirement

… all in one solution!

When structured properly, a life insurance policy can be your corporate or personal bank and the foundation of your financial plan. 

I enjoy working with clients, from individuals to corporations, to develop advanced insurance strategies to help them achieve specific goals for their own or their corporation’s financial future.

Term Insurance vs Permanent Insurance

What’s right for YOU?   First, remember, the best type of life insurance policy is the one that’s in force when you die.

Let us help you select the best kind of insurance for your needs.

The two most common forms of life insurance are Term and Permanent (Whole Life/UL/IUL.)   Experts will criticize both, however they are equally useful when chosen according to the needs of the individual.

Term Insurance

Term insurance is life renting a house.   It’s a type of life insurance policy that provides coverage for a certain period of time (like a lease) or a specified "term" of years.  If the insured dies, and the policy is active, or in force, during the time period specified in the policy a death benefit will be paid.

Just has renting is less expensive than owning a house, term insurance is initially much less expensive when compared to permanent life insurance.  Term insurance has no cash value.  In short, the only value is the guaranteed death benefit from the policy.

Permanent Life Insurance

Permanent life insurance is like owning a house.  Typically, permanent life insurance combines the protection of a death benefit with a savings benefit.

The two primary types of permanent life insurance are whole life and universal life. Whole life insurance offers coverage for the full lifetime of the insured, and its savings can grow at a guaranteed rate. Universal life insurance also offers a savings component in addition to a death benefit, but it features different types of premium options and earns based on market performance.

The growth of the cash value is generally on a tax-deferred basis, meaning that the policyholder pays no taxes on any earnings as long as the policy remains active.  The policy owner can borrow funds against that cash value or, in some instances, withdraw cash from it outright to help meet needs such as paying for a child’s college education or covering medical expenses.

Borrowing against the savings portion is initially not possible in the early years, so that sufficient cash can accumulate in the fund. If the amount of the total unpaid interest on a loan, plus the outstanding loan balance exceeds the amount of a policy’s cash value, the insurance policy and all coverage will terminate.

As long as certain premium limits are adhered to, money can also be taken out of the policy without being subject to taxes because policy loans usually are not considered taxable income. Generally, withdrawals up to the sum total of premiums paid can be taken without being taxed.

Many people have different insurance needs depending on what stage of life they’re in.   Term life insurance is popular for its lower premiums, but it usually will expire well before the end of a policyholder’s life.

With the goal of having paid off most debt and other financial obligations by that time, while also accumulating sufficient savings, some people may find that they’d prefer ongoing coverage and savings opportunities, and want a new permanent policy.

Term life policies offer the option to convert to permanent policies later, often without the need to take medical exams or otherwise qualify again. This benefit makes the conversion appealing for someone with medical issues that could make a new policy too expensive or with chronic conditions that require ongoing expenses that could be drawn from the savings portion.