Specialty Life Insurance Design and Implementation

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 can offer:

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. Product guarantees including the death benefit are subject to the claims-paying ability of the issuing insurance company.
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 the 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.