Life Insurance

Life insurance has many unique characteristics that may make it an appropriate solution for a variety of challenges, including providing payment of a death benefit at the death of the insured(s). In addition to death benefit protection, characteristics may include:

  • Tax-deferred accumulation of policy cash values.
  • Income tax-free death benefits.
  • Tax-advantaged access to policy cash values. Please keep in mind loans and partial withdrawals may decrease the death benefit and cash value and may be subject to policy limitations and income tax.

The many flexible features that life insurance policies provide present appropriate uses for personal, business, and charitable situations.

Personal

  • Family Protection: Provides a source of cash for surviving family members to utilize for living expenses.
  • College Funding: Provides a funding source for college education of children or grandchildren.
  • Debt Protection: Generates cash to pay off an existing mortgage or other personal debt.
  • Wealth Creation: Provides funds to leave as an inheritance or to equalize inheritances among family members.
  • Estate Tax Liquidity: Creates liquidity to pay estate taxes rather than requiring liquidation of existing estate assets.
  • Gifting Leverage: Leverages the use of the annual gift tax exclusion, the lifetime exemption, and/or Generation Skipping Transfer Tax exemption.

Charity

  • Wealth Replacement: Used with many charitable gifting programs to replace, for heirs, the value of estate assets that were gifted to charity.
  • Gift Creation: Used to create a significant donation to charity at death or during life.
  • Gift Leverage: Used to maximize the eventual charitable donation at the death of the insured.