After reviewing your financial situation, we’d like to discuss life insurance policies that could not only protect your family’s future but also help mitigate taxes and provide income in the coming years. Insurance is a key component of any good financial plan. The right policies can help manage risks (financial or otherwise) by preparing for life’s unknowns. However, as your life and finances change, so do your insurance needs. When you’re just starting out, life insurance is often used to protect your family should something happen to you, but these policies can have many uses, including helping to:
Life insurance policies have valuable built-in flexibility. For example, if during retirement required minimum distributions and investment income could bump you into a higher tax bracket, you could withdraw from an overfunded cash-value insurance policy instead of investment accounts to support your lifestyle tax-free. Insurance investments accumulate tax-free, and if a death penalty is passed to your family, they can benefit tax-free as well. When considering purchasing life insurance, it’s important to assess your current and future financial needs, as well as policy options such as whole, term, universal, variable, or indexed universal life insurance. Each has its own protection period, cost, investment options, and cash value. However, insurance solutions should always be evaluated as part of your broader financial plan by a professional who understands taxes. |
For a comprehensive review of your personal situation, always consult with a tax or legal advisor. Neither Cetera nor any of its representatives may give legal or tax advice.
The cost and availability of life insurance depend on factors such as age, health, and the type and amount of insurance purchased. Before implementing a strategy involving life insurance, it would be prudent to make sure that you are insurable by having the policy approved. As with most financial decisions, there are expenses associated with the purchase of life insurance. Policies commonly have mortality and expense charges. In addition, if a policy is surrendered prematurely, there may be surrender charges and income tax implications.