There are many reasons to add insurance to your portfolio. Think of this asset class as a bank account that you grow using Corporate dollars. The bank account can be used at any time, but it continues to grow and protect your family.
Our insurance experts can help you decide which kind and how much is right for you and your investments. By adding this asset class you provide vital tax-effective coverage and comfort to you and your family while protecting your portfolio.
Whole Life Insurance is a great way to protect and grow your wealth, using corporate dollars. Offering tremendous tax advantages and dividends that increase over time, here are some benefits to your portfolio:
LIFE INSURANCE
Cash Value that Increases Net Worth
Cash value life insurance policies has a built-in savings component. If you keep your policy active for over a long period of time, you will get more than what you had invested.
Guaranteed Investment Returns
A guaranteed investment is a product whose principal and return are guaranteed by a government or financial institution to which money is loaned in exchange for interest. One of the advantages of a guaranteed investment is that you know its value at maturity.
Tax Efficiency
The cost of life insurance, often referred to as premiums, are generally not deductible, regardless of ownership structure. This is one of the biggest reasons why the benefits on the death of the life insured are tax-free when paid out to the beneficiary.
Enhance Estate Value
Life insurance provides two major advantages for estate preservation: It provides liquidity to pay the debts so that your estate doesn't have to sell off the assets for cash. It provides cost-effective funding today for an expected capital need at death.
Other benefits such as:
You can use corporate vs. personal dollars to purchase insurance
Returns similar to fixed income
More tax efficient than bonds
Low correlation to equities
Increases net worth
Guaranteed cash value
Term life insurance uniquely covers a specific period of time, catering to your specific needs. Less expensive than other insurance it is like renting coverage, when you need it.
Cover Your Mortgage
Purchase a term life insurance policy for at least the amount of your mortgage. Then, if you pass away during the "term" when the policy's in force, your loved ones receive the face value of the policy. They can use the proceeds to pay off the mortgage.
Annuities
An annuity is a financial product that provides a series of regular payments to an individual over a specified period of time. There are several different types of annuities, including fixed annuities, variable annuities, and indexed annuities. Fixed annuities provide a fixed rate of return, while variable annuities allow the investor to choose from a range of investment options. Indexed annuities offer a rate of return that is tied to a specific stock market index.
Provide Funds to a Business Owner
Term life insurance is coverage that provides a one-time tax-free payout if the person who's insured – you, your business partner, or a key employee – dies within the term you choose. It can help your business continue to operate by covering its debt, expenses, or a partner buyout.
Let us know what you’re interested in and we’ll give you a personal call to book a time to talk about your goals.
