Life Insurance for Asset Protection
Life Insurance is very complicated. The perspective that a good practitioner will have on a client's need for Life Insurance will depend upon many variables. Three basic things can happen during the term of a Life Insurance Policy; the policyholder can live, die or become disabled. In some states, Life Insurance is protected from creditors. Life Insurance proceeds are tax-free and can be applied to partnerships, corporations, LLC's and Trusts.
Term Life is pure insurance; it can be very simple – with cash value received at the end of the term; but there are now different types, which complicate the structure of the terms. The main goal of Term Life policies is to pay a lump sum to a beneficiary upon the death of the policy owner. This provides some extent of asset protection for a family, in the event that a spouse dies; the family is provided for with a lump sum cash payment.
Whole Life Insurance provides permanent protection for dependents while building a cash value account of the policy owner. With this type of insurance, the insurance company manages the policies various accounts. It pays a death benefit to the beneficiary named and offers low-risk, tax-free cash accumulation: it allows the death benefit to vary in relation to the fund returns of the cash value account: it provides for borrowing from the policy during the policy lifetime. There is no guarantee on the cash value.
Universal Life Insurance provides permanent protection for your dependents and is more flexible than whole or variable life. It pays a death benefit to the named beneficiary and offers a low risk cash value account and tax deferred accumulation: it allows the policy holder to earn market rates of interest on the cash value of the account: it offers the right to borrow or withdraw from the policy during your lifetime.
Universal Variable Life is the type of insurance that offers control of cash value account policy and has multiple features. It pays a death benefit to the beneficiary and offers low risk tax deferred cash value options: it offers separate accounts for investment in such as money market, stock, and bond funds: it the policy holder to make withdrawals or to borrow from the policy during. There are penalties for early termination.
With all the choices what is the best approach. The facts and circumstances of all cases made it challenging for sure. There is a product tha can protect the downside risk will still giving you upside potential. It is Revolutionary Life.
How to grow wealth in a tax-free manner with no downside risk when the stock market goes negative using Revolutionary Life.
The Asset Protection Story
Life Insurance should be part of a person's estate plan; however in many states where Life Insurance is protected against creditor attack, it can be a great asset protection tool. While there are many different types of life insurance, there are certain types that be give you asset protection and flexibility as well as a cash benefit to your heirs. For more information contact us.
ESTATE AND TAX PLANNING
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