After reviewing your financial situation, we’d like to discuss life insurance policies that could not only protect your family’s future but also help mitigate taxes and provide income in the coming years. Insurance is a key component of any good financial plan. The right policies can help manage risks (financial or otherwise) by preparing for life’s unknowns. However, as your life and finances change, so do your insurance needs. When you’re just starting out, life insurance is often used to protect your family should something happen to you, but these policies can have many uses, including helping to:
Life insurance policies have valuable built-in flexibility. For example, if during retirement required minimum distributions and investment income could bump you into a higher tax bracket, you could withdraw from an overfunded cash-value insurance policy instead of investment accounts to support your lifestyle tax-free. Insurance investments accumulate tax-free, and if a death penalty is passed to your family, they can benefit tax-free as well. When considering purchasing life insurance, it’s important to assess your current and future financial needs, as well as policy options such as whole, term, universal, variable or indexed universal life insurance. Each has its own protection period, cost, investment options and cash value. However, insurance solutions should always be evaluated as part of your broader financial plan by a professional who understands taxes. Please call our office at your earliest convenience to schedule a complimentary review of your insurance policies and ensure you’re taking advantage of the flexibility and tax-saving opportunities they offer. Best Regards, Eric Cooper |
Life Insurance Could Help You Save on Taxes
