Life insurance is a building block of wealth management because it focuses on risk management. It puts to rest uncertainties that surround death and disability, allowing you to build and leave a legacy and alleviate the strain of estate taxes. It can even pay for long-term health care if you become terminally ill or disabled.
We are here to answer your most pressing questions: How much coverage will you need? What's the most appropriate policy? What is affordable? Let our LPL financial planning specialists help you find the best fit for you and your family.
Did you know life insurance can be a key wealth-building strategy? Depending on the type of policy you choose, it can benefit you in many ways. Our goal is to find the best coverage for your objectives and budget. Tim Geisbauer is an independent financial consultant who works with a wide variety of providers and builds life insurance protection in your overall asset management.
What It Can Do for You
There are many varieties of life insurance. Put in the most basic terms, it is a contract that pays a specified sum (benefits) to designated people or organizations upon the death of the insured person. Payment for funeral expenses or long-term care can also be a part of it. Some policies can be borrowed from; others disburse payment in the event of a terminal or critical illness to alleviate the high cost of care. Most importantly, insurance can help you preserve assets for your loved ones or favorite charities.
What is Term Life Insurance?
This protection policy is highly affordable. It typically provides a benefit for a set period of time (a term) for a specific event like death. Premiums typically stay guaranteed for a certain period and can be renewed at an adjusted rate afterward. The tax-free proceeds can help offset loss of income during peak working years, enabling your spouse to pay for your child's college or pay off a mortgage, for example.
What is Permanent Life Insurance?
These are a family of policies that function as estate-building tools. They generally provide lifetime coverage with tax-deferred savings that may build over the years. All of these types generally provide lump sum benefits that are not taxable to survivors.
Universal coverage - This type helps preserve the wealth that will be transferred to beneficiaries. As a risk management tool, it is designed to replace long-term income.
Whole life insurance - This provides lifetime coverage. Its premiums are fixed and it has cash value that accumulates tax-deferred savings. It can be used to preserve the assets you plan to bequeath to loved ones.
Today, flexible linked benefits combine both life and health components. It can be a great comfort to know that your long-term care needs will be provided for in case of disability or disease. It can be a sound wealth management strategy that manages your risk in the face of life's uncertainties. Most importantly, it may preserve the assets you have spent years building for future generations.
As the saying goes, there are only two certainties: Death and taxes. If you have a large estate, you may worry about the tax liabilities that will one day fall upon your loved ones. Life insurance can be used to pay that obligation. This way, your family can enjoy more of the money you have left for them.
Think of insurance as a tool that can be custom-fit for your unique situation and your changing needs. As wealth management specialists and estate planners, we can skillfully use this means as a way to preserve what you have worked to accumulate and leave your loved ones feeling secure. Call now to learn which type of life insurance is best for your needs.
The LPL Financial Registered Representatives associated with this site may only discuss and/or transact securities business with residents of the following states: CA, FL, ID, IL, PR, and UT