When it comes to financial health, life insurance can meet so many of your needs. From optimizing and maximizing your wealth, discounting your estate tax, protecting your family from your unexpected death, or helping you make up for the losses you’ve experienced with other financial services and products, life insurance can serve you well.
Think of life insurance as an investment alternative that holds just as important a place in your diversified portfolio as your stocks, bonds, real estate and other investments. What sets life insurance apart, however, is that your return is guaranteed if you pay premiums to keep the policy in force until a mortality event occurs.
Here are some instances in which life insurance can make a tremendous difference in your financial success:
By utilizing an irrevocable trust, you can save up to 90% on your estate tax costs. Assuming you have a $10 million estate, you will ultimately pay approximately $5 million in estate taxes. By structuring an irrevocable trust you and your spouse can transfer $500,000 to this trust in order to purchase a $5 million policy on the two of you (assuming you are both age 60 and in preferred health) that will last for the rest of your lives. After you are both gone the trust will have the proceeds to pay the ultimate estate tax due on your estate. In this instance, you will have paid $500,000, rather than $5 million, and you get to leave the entire value of your estate to your loved ones.
When the world financial markets are in turmoil, many wealthy individuals see their net worth slide. If you lost money in the stock market, or any other investment product, you can recover those losses for the ultimate benefit of your family or charity by purchasing a life insurance policy in the amount that no longer exists. If you lost $2 million, buy a $2 million life insurance policy; if you lost $5 million, buy a $5 million policy. By using only funds that you do not need for living expenses, there is no other financial method to guarantee the replacement of your hard earned money.
Life insurance offers so many unique features and benefits. Call Howard Kaye Insurance Agency to learn how the power of life insurance can allow you to sit back and watch your wealth increase for the benefit of your heirs and favorite charities.
Guaranteed payment of life insurance proceeds are based upon the claims paying ability of the insurance carrier and making the required premium payments until the death benefit is paid.
Howard Kaye Insurance Agency, LLC does not provide tax or legal advice. Clients should consult their own tax and legal professionals.
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