Life Insurance 101
Life Insurance is money. Money is money, whether it comes from stocks, Municipal Bonds, Real Estate or Life Insurance. When you die, it all spends the same.
Life insurance is not just a form of protection. It is a tax-favored asset. What’s more, it will always be worth what you buy, while stocks, real estate and other investments may be worth more or less at your death.
Don’t limit the use of life insurance when you could use it to double or triple your assets as an alternative to other investments. You have to die to get the results, but you are going to die even if you don’t buy life insurance. Most people have plenty of assets that they will never spend and are just accumulating to eventually leave to their children and grandchildren…whether is the IRA that you are taking required minimum distributions from, the bond interest you are letting accumulate, or the stocks that have grown but you don’t sell.
Life insurance benefits are paid income tax free and the death benefits can easily be structured to be paid free of estate taxes too. Use life insurance to create assets for your heirs and favorite charities. Pay taxes with discounted dollars. Recover losses in the stock market. Recreate your dreams that possibly never were realized for the financial future of your family.
The best estate planning in not the plan that pays the least taxes, it is the plan that leaves the most money to your heirs and favorite charities. |
