LIFE PLANNING

Life insurance has many unique characteristics that may make it an appropriate solution for a variety of challenges, beyond those that arise at the death of the insured(s).

In addition to death benefit protection, life insurance offers:

  • Tax-deferred accumulation of policy cash values.

  • Creditor protection (in some states).

  • Tax-advantaged access to policy cash values. Please keep in mind loans and partial withdrawals may decrease the death benefit and cash value and may be subject to policy limitations and income tax.

The flexible nature of many modern life insurance policies provides a powerful means to address a wide range of personal, business, and charitable situations.

PERSONAL

  • Family Protection: Provides a source of cash for surviving family members to utilize for living expenses.

  • College Funding: Provides a funding source for college education of children or grandchildren.

  • Debt Protection: Generates cash to pay off an existing mortgage or other personal debt.

  • Wealth Creation: Provides funds to leave as an inheritance or to equalize inheritances among family members.

  • Estate Tax Liquidity: Creates liquidity to pay estate taxes rather than requiring liquidation of existing estate assets.

  • Gifting Leverage: Leverages the use of the annual gift tax exclusion, the lifetime exemption, and/or Generation Skipping Transfer Tax exemption.

BUSINESS

  • Key Employee: Provides funds to aid in the search for a replacement in the event of a key employee’s death.

  • Executive Recruitment and Retention: Used in a variety of nonqualified benefit programs to help attract and retain key employees.

  • Business Continuation: Provides funds to aid in the continuation of business in the event of an owner’s death or disability.

  • Succession Planning: Provides liquidity to purchase the ownership interest of a deceased owner.

  • Debt Protection: Creates a pool of money that can be used to pay off borrowed money.

CHARITY

  • Wealth Replacement: Used with many charitable gifting programs to replace, for heirs, the value of estate assets that were gifted to charity.

  • Gift Creation: Used to create a significant donation to charity at death or during life.

  • Gift Leverage: Used to maximize the eventual charitable donation at the death of the insured.

PERMANENT LIFE INSURANCE

The balance sheet of most families are comprised of complex assets with varying levels of liquidity.  Additionally, most wealth accumulation and wealth transfer strategies require time to mature.  As a result, market volatility and changing financial circumstances can have a material impact on wealth creation and preservation.  Traditional life insurance product portfolios can produce attractive, income-tax-free, Internal Rate of Return and provide immediate liquidity to the policy owner at the death of the insured(s).  A well-constructed life insurance portfolio can help reduce the volatility of a family’s net worth, while providing an important liquidity hedge for wealth transfer strategies that take time to mature, and help to prevent the forced sale of assets that might otherwise be required to fund estate tax liabilities at the death of an insured.

Life insurance has many unique characteristics that may make it an appropriate solution for a variety of challenges, including providing payment of a death benefit at the death of the insured(s). In addition to death benefit protection, characteristics may include:

  • Tax-deferred accumulation of policy cash values.

  • Income tax-free death benefits.

  • Tax-advantaged access to policy cash values. Please keep in mind loans and partial withdrawals may decrease the death benefit and cash value and may be subject to policy limitations and income tax.

Life insurance is a dynamic asset. It plays a vital role in the planning process, but implementation and management can be complicated. Strategic Risk Management has longstanding experience working successfully with businesses, executives, high net worth families and individuals on complicated insurance transactions.

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Securities offered by Peak Brokerage, Member FINRA/SIPC. Advisory services offered by Star Capital Inc., a Registered Investment Advisor. Strategic Tax and Retirement, Strategic Risk Management and Star Capital are not affiliated with Peak Brokerage Services. Securities can only be offered in the following states: Arizona, Iowa, Minnesota, Nebraska, North Carolina, and Wisconsin. The information being provided is strictly as a courtesy.This page contains links to third-party company websites.