Category : Life Insurance

The Value of a Life Insurance Policy Audit

• John Griffin
• October 24, 2016

How to Find Hidden Assets in Your Life Insurance Portfolio

For anyone who has purchased life insurance over the years, a life insurance policy audit is an extremely important part of protecting financial assets and overall wealth. Many times, life insurance policies are purchased and tucked away, not seeing the light of day until they are needed.

Large Estates Need Life Insurance Liquidity

• John Griffin
• September 16, 2016

Large Estates Need the Liquidity That Life Insurance Can Provide

It has long been known that life insurance is a valuable tool in estate planning. For every person who has accumulated or inherited a substantial estate, there is the inevitable discussion about dealing with the estate tax issue. It is very real to those who have accumulated estates of $10 million or more, and the tax can be a deal destroyer if not dealt with. That is why many planners will utilize any and all available strategies to avoid paying high taxes. But ultimately, there must be a plan to pay the tax that must be paid.

Six Advantages of Using Life Insurance as an Asset

• John Griffin
• April 15, 2014

Six Advantages of Life Insurance

One.  Life Insurance offers a competitive “Rate of Return” on the premiums you contribute.

Two.  Life Insurance is a tax efficient vehicle.

• Life insurance death proceeds are received by your family free of income tax.
• Life insurance cash values grow tax-deferred and can be accessed in a tax-favored manner.
• If owned outside of the taxable estate, the proceeds should not be taxable to estate tax.

Three.  Life Insurance can provide for self-completion of your financial plans in the event of death.

• Life insurance death benefit may offer significant leverage, especially in the early years, and may increase the amount of wealth transferred to heirs.

Four.  Life Insurance as an asset class.

• Life Insurance death benefit is not correlated with other sectors of the investment marketplace, such as equities or bonds, thus is not subject to the same factors that those asset classes are subject.
• By directing a portion of portfolio to life insurance premiums, client may mitigate against market losses.

Five.  Life Insurance may increase tax-adjusted IRR of your portfolio.

• Over the long term, life insurance performs much like a tax-free bond in that it provides a good, tax free rate of return.
• In the short term, life insurance offers significant leverage in the amounts paid out, providing exponential returns on the amounts invested.

Six.  Life Insurance may increase tax-adjusted IRR of client’s portfolio.

• Due to the fact that life insurance is not correlated to other investment sectors, it can increase the overall rate of return to your overall investment portfolio
• When other sectors are suffering from periodic downturns, life insurance affords a steady growth instrument to offset those downturns in other investments

Considerations

• Directing funds to life insurance premiums may reduce the return on your portfolio.
• Potential advantage offered by life insurance needs to be viewed in light of your overall financial situation.
• Your ability to see this plan to fruition is based on continuing premium payments, as required, as well as the claims paying ability of the underlying insurer.
• Your total insurance capacity may be limited by financial underwriting.
• Life insurance qualification generally requires medical and financial underwriting.