Wealth Transfer
There are many strategies utilized to pass assets to the next generation, but using life insurance for wealth transfer is one of the most efficient. If purchased at a young age, it can be very cost effective and the proceeds are income tax-free to the beneficiaries. Additionally, these policies can be structured to avoid federal estate and state inheritance taxes.
Business Succession Planning
If you own a business, have you considered what would happen to your company if you, your business partner, or another essential employee died unexpectedly? A succession plan that includes life insurance can help protect both your company and your family. In the event of an owner’s death, a life insurance benefit can be used to pay off outstanding loans immediately while your company regains its financial footing.

Education Costs
With the increased cost of college tuition, parents are finding it more difficult to meet tuition payments. Among other saving tools, life insurance can be used as a means to afford higher education expenses. With a cash value life insurance policy, you can use the cash value component to build funds for college expenses, and the death benefit component to secure the funds needed for your child’s education in the event of your premature death.
Retirement Funding
A life insurance policy cash value grows tax deferred and any accumulated cash value can be accessed tax-free via loans and withdrawals, as long as they are properly structured. These features make the policy cash value a good choice to supplement retirement income.
Long-Term Care Coverage
Some life insurance policies offer optional long-term care riders, allowing you to truly customize your policy to fit your needs. This benefit is paid as an acceleration of the life insurance death benefit and can then be used to cover the cost associated with long-term care services. If long-term care benefits are not used, beneficiaries will receive the income tax-free death benefit.
Protection is Key
Sources & Disclosure
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