Life Insurance

Using Loans to Pay Life Insurance Premiums

Replacing an Existing Life Insurance Policy

Premium financing concerns borrowing money to pay life insurance premiums. While there may be multiple reasons to employ this strategy, it is often used to avoid liquidating other investments to pay premiums. It is important to remember that premium financed insurance is not the same thing as free insurance. Nor is it designed to allow…

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Underwriting – Changes Coming

Underwriting is a process by which a financial institution evaluates the risk associated with insuring or lending to an applicant. In the case of life insurance companies, companies are taking a calculated risk on when they will need to pay a death claim. The industry has collected an enormous amount of data over the last…

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Transfer of Value for Life Insurance

Life Insurance in Pension Plans QandA

A life insurance policy’s death benefit is usually paid to beneficiaries free of federal income tax. One exception to this rule is when a policy is sold or transferred for valuable consideration. In this scenario, the income tax exemption only applies to the purchase price plus premiums paid by the transferee. The death benefits less…

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Evaluating Life Insurance Companies

Companies

When one commits to a life insurance policy, a person naturally assumes that the policy they were sold will be honored. Unfortunately, this is not always the case. Many universal life policyholders have found that their insurance company has changed the policy assumptions as a result of financial losses. The ultimate policy change is the…

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Life Insurance in Trusts

Life Insurance in Trusts

Life insurance trusts are a key tool for estate planning attorneys. Trusts enable donors to pass capital from a donor to his/her heirs at an enormous transfer tax savings. Policies held in trusts are not included in a donor’s estate, thereby reducing the estate tax liability. Proceeds from the life insurance policies can be, but…

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Life Insurance: Giving It Away

Long Term Care

Many people desire to make large charitable gifts during their lifetime but hesitate due to concerns about compromising their family’s financial security. Life insurance can help alleviate these concerns by enabling the donor to give to his/her favorite charity while providing for the donor’s heirs and beneficiaries. One common technique employs a life insurance policy,…

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Life Insurance in Pension Plans Q & A

Life Insurance in Pension Plans QandA

Life Insurance in a Pension Plan Q. Are unisex rates required when life insurance is bought in a pension plan? Yes, these are required. Unisex rates are the same rates for men and women. Q. Should I ask for an estimate of the economic benefit I will have to realize each year as taxable income?…

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Life Settlements

Introduction Life insurance is an assignable asset. It can be given away, transferred, or sold. With a life settlement, the owner of a life insurance policy sells the policy to a third party in exchange for cash. The owner receives less than the amount of the death benefit but more than the cash surrender value.…

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Questions – Guaranteed Universal Life

Q. Are the guarantees affected by paying premiums before the due date, within 30 days after the due date, or after 30 days from the due date? You need to know how the timing of premium payments can affect the guarantees. To find out, obtain an annual enforce illustration to make sure the guarantees are…

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It took a lifetime to build your legacy. Give us a call to see how we can help you preserve it.

It took a lifetime to build your legacy. Give us a call to see how we can help you preserve it.

Steve

Get in touch with Steve Goodman today

CPA, MBA – President & Chief Executive Officer

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