The value of cash value Life Insurance
Many people think of one thing when it comes to life insurance. While most people buy life insurance primarily to replace income. 11% of people asked, citing tax savings as one of their reasons. 22% of people say transferring wealth (tax-free) is the motivation to buy life insurance.
I would like to point out the value of cash value life insurance starting with saving on taxes.
Related Article: Living Legacy
Why is the tax savings important? Because many of us believe taxes will be increased. Many planners position clients with an assumption that taxes will be lower when the client is older. We believe that taxes will be higher thus saving on taxes is imperative. “It’s not what you make someone said it is what you keep”
We design life insurance policies with significant tax savings. The Tax Foundation estimates that the tax exemption on certain life insurance contracts totaled a whopping $1.68 billion in 2011. The tax benefit is one of the reasons along with safe and guaranteed returns financial advisers often recommend them to wealthy clients: As wealthy clients moved money into safer financial vehicles before the crash of 2008. Our research found policies worth $2 million or more accounted for nearly 40% of permanent policies sold in 2007. A decade ago, they represented only 10% of policies.
Related Article: The Family Bank
Wealthy families have used life insurance policies for many years. Policies designed to protect, preserve and increase a calculated percentage of their generational wealth. Most people today are unaware of investment-grade life insurance. The concept of the family bank is one that most middle-income people know nothing about.
If you would like to put the value of cash value life insurance to work for you please contact Bender Advisors.
About Bender Advisors California Benefits Broker
Bender Advisors is a modern employee benefits and insurance services company. We apply a unique blend of expert knowledge, unmatched personal service, and proactive planning to create proven strategic solutions and promote a culture of wellness for our clients.