Life insurance St Petersburg, FL

GENERAL PURPOSES OF LIFE INSURANCE

Life insurance is a unique asset. Because of its potential high yield and its tax-favored benefits, it can be used to solve some of life’s perplexing financial problems.

Life Insurance Can Be Used To:

Create An Estate:

Where time or other circumstances have kept the estate owner from accumulating sufficient assets to care for his or her loved ones, life insurance can create an instant estate.

Pay Death Taxes And Other Estate Settlement Costs:

These costs can vary from a low of three to four percent to over 50% of the estate. Federal Estate Taxes are due nine months after death.

Fund A Business Transfer:

Business owners often agree to buy a deceased owner’s share from his or her estate after death. Life insurance provides the ready cash to finance the transaction.

College Fund For Children Or Grandchildren:

Cash value increases in a policy on a minor’s life or parent’s life and can be used to accumulate funds for college.

Pay Off The Home Mortgage:

Many people would like to pass the family residence to their spouse or children free of any mortgage. Often a decreasing term policy is used, which decreases in face amount as the mortgage balance is paid down.

Protect A Business From The Loss Of A Key Employee:

Key employees are difficult to attract and retain. Their untimely death may cause a severe financial strain on the business.

Supplement Retirement Funds:

Current insurance products provide competitive returns and are a prudent way of accumulating additional funds for retirement years.

Replace A Charitable Gift:

Gifts of appreciated assets to Charitable Remainder Trusts can provide income and estate tax benefits. Life insurance can be used to replace the value of the donated assets. Proceeds from life insurance policies can also be paid directly to a charity.

Pay Off Loans:

Personal or business loans can be paid off with insurance proceeds.

Equalize Inheritances:

When the family business passes to children who are active in it, life insurance can give an equal amount to the other children.

Accelerated Death Benefits:

The Health Insurance Portability and Accountability Act of 1996 changed federal tax law to allow a “terminally ill” individual to receive the death benefits of a life insurance policy on his or her life, income tax free. Existing life insurance policies should be reviewed to verify that policy provisions allow for payment of such “accelerated death” benefits.

Pension Maximization:

At retirement, married pension plan participants must make a choice to either:

Take the maximum monthly income for the life of the retiring employee (single life only, for example $1,000 per month), or

Take a substantially reduced monthly income for the lifetimes of both the retiring employee and his or her spouse (joint and survivor, for example $800 per month)

The pension maximization strategy uses a permanent life insurance policy to provide a death benefit to the surviving spouse sufficient to replace the income that might have been received if the joint and survivor option had been chosen.

Advanced Capital Management, Inc. can show you how to get better returns on your retirement dollars and provide you with the income you need. Why not find out more about how a lifetime income annuity rider works? It costs you nothing to find out if a Fixed Index Annuity or Life Insurance is the right option for you. Just click on the orange “Get Annuity Quote” button to the right and see how you can generate more income, safely, for your retirement.

 

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