Insurance Solutions for Individuals

Life insurance provides a tremendous leverage. The tax-favored nature of life insurance is one of the most efficient and effective way to provide for multiple objectives, some of which include:

Federal Estate Tax Funding

Although assets could be liquidated to pay federal estate tax, why liquidate assets at a “fire-sale”? One dollar of liquidity pays for one dollar of taxes. Life insurance can provide the needed liquidity potentially at cents on the dollar.

Generational Planning (Dynasty Trust Funding)

Waiting to use the Generation-Skipping Tax (GST) exemption at death may not be the most efficient manner of transferring assets to the future generations.

Planning with life insurance can leverage the life insurance premiums possibly multiple times, providing a legacy for future generations to fund family businesses, charitable endeavors, educational funds, etc.

Leverage of Gifts to Children/Grandchildren

An outright gift of a dollar today to children or grandchildren provides no protection from creditors’ claims and provides no leverage of dollars.

Providing life insurance within an Irrevocable Trust provides a death benefit, while only subjecting the premium to the gift-tax annual exclusion. The death benefit can be protected in the trust for future generations, while, at the same time, giving heirs the access to needed funds.

Estate Equalization

Clients who have children active and non-active in a closely held business often face a dilemma.  How do they provide for both the active and non-active children fairly and equitably? Life insurance can help provide estate equalization.

Stability of Wealth for Clients with Concentrated Stock Portfolios

Clients who have a large, disproportionate stock position in their portfolios are exposed to company‐specific risk and stock price volatility. Life insurance can help mitigate this risk by leveraging some of the assets to create wealth for the next generation while helping to diversify the portfolio.

Special Needs

Life insurance can provide comfort to the parents of a special needs child, knowing that the dollars will be available on day one following the parents’ death to provide for the costs of ongoing care.

Charitable Giving

Some clients want to make a difference by leaving a legacy to charity. Life insurance can help accomplish this objective without draining the funds earmarked for children’s inheritance, or by replacing the value of the assets given to charity.