{"id":42,"date":"2015-05-25T12:09:06","date_gmt":"2015-05-25T12:09:06","guid":{"rendered":"https:\/\/hgwebdev3\/grpadvisor\/\/?page_id=42"},"modified":"2016-11-10T21:31:57","modified_gmt":"2016-11-10T21:31:57","slug":"financial-planning","status":"publish","type":"page","link":"https:\/\/www.heff4life.com\/?page_id=42","title":{"rendered":"Insurance for Individuals"},"content":{"rendered":"
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Estate Planning<\/span>Retirement Supplement<\/span>Long term Care Insurance<\/span>Fixed annuities<\/span><\/div>
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Estate Planning<\/em><\/strong><\/p>\n

Life insurance has many uses in an estate plan.\u00a0 Reasons for life insurance include estate liquidity, estate tax payment, debt repayment, income replacement, wealth accumulation, and asset replacement. \u00a0There are many different types of policies to consider at various price levels.<\/p>\n

Survivorship Life Insurance Policy<\/em><\/strong>, <\/strong>also known as second-to-die, is similar to joint life in that the policy insures two people. \u00a0However, a survivorship policy only pays out upon the second death of the joint insureds. Because the benefit is not paid until the last insured dies, the life expectancy is greater and therefore the premium is lower. Survivorship policies are typically either whole or universal life policies and are usually written to insure husband and wife.<\/p>\n

These policies are commonly used by heirs to cover estate taxes.<\/p>\n

Charitable Remainder Trusts<\/em><\/strong>.<\/strong><\/p>\n

Life insurance proceeds can also be used to replace an asset donated to a charitable remainder trust.<\/p>\n

How does a CRT work?<\/em><\/strong>
\nThe owner transfers an appreciated asset into an irrevocable trust. This removes the asset from their estate, so no estate taxes will be due on it when they die.\u00a0 They also receive an immediate charitable income tax deduction for the current value of the asset.<\/p>\n

The trustee then sells the asset at full market value, paying no capital gains tax, and re-invests the proceeds in income-producing assets. For the rest of your life, the trust pays you an income. When you die, the remaining trust assets go to the charity(ies) you have chosen. That\u2019s why it\u2019s called a charitable remainder<\/em><\/strong> trust.\u00a0 Life insurance, also owned by a trust, is used to replace the value of the asset to the heirs.<\/p>\n<\/div>\n

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Life Insurance as a retirement supplement<\/em><\/strong><\/p>\n

For many people, life insurance and retirement planning are two separate goals and are unrelated. \u00a0Retirement planning is for the individual, while life insurance is for their your family. However, some financial advisors also recommend life insurance as a supplemental source of retirement income.\u00a0 This strategy is not for everyone, but there are many upsides for those who are a good fit.<\/p>\n

Permanent life insurance plans can offer benefits<\/em><\/strong><\/p>\n

Among the many types of life insurance available, permanent life policies are the primary tool as a way to supplement retirement savings. When someone buys a permanent life insurance plan \u2014 whether it\u2019s variable, universal or whole life insurance, or a hybrid \u2014 a portion of the premiums go into an investment account that grows tax deferred, and builds cash value alongside or in addition to the death benefit.<\/p>\n

One of the advantages of permanent life insurance is the ability to withdraw or borrow against this cash value. One might do this to pay a mortgage for a few months due to a lost job, or to fund a lifetime of retirement income.\u00a0 There can be tax advantages to getting supplemental cash from a life insurance policy as well. \u00a0Distributions through borrowing can be tax free. If someone is already maxing out other retirement vehicles \u2014 such as 401(k)s and IRAs \u2014 and has a life insurance need, they could be a good fit for this strategy.<\/p>\n<\/div>\n

Long term Care Insurance \u00a0<\/strong><\/em><\/p>\n
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Long term Care Insurance<\/strong> \u00a0<\/em>includes the care and services provided to a person who \u00a0is determined by a licensed physician to need regular daily help with their Activities of Daily Living. (ADL\u2019s) The normal ADL\u2019s are eating, bathing, dressing, using the restroom, transferring, ( moving from a bed to a chair) ambulating, or a severe cognitive impairment like Alzheimer\u2019s.\u00a0 LTC will pay for a person to come in and take care of them in their home, or pay for them to be taken care of in a facility. .<\/p>\n

Hybrid Products<\/strong><\/em> combine the protection of life insurance, with the ability to access the benefit during your lifetime to help pay for \u00a0long term care. \u00a0They are designed for clients to reposition a portion of their assets to cover the premium. It can be both tax efficient, and cost effective, to pay for long term care through income tax-free benefits.\u00a0 You can also get most of your money back if it turns out you don’t need the coverage.<\/p>\n<\/div>\n

Fixed annuities<\/em><\/strong><\/p>\n
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Annuities<\/strong> <\/em>are an investment sponsored by insurance companies, and are designed to \u00a0create a revenue source for your retirement. You make a deposit now, and you receive an income stream in the future. The income can be guaranteed for selected period of time, including lifetime.<\/p>\n<\/div><\/div><\/div>\n<\/div>\n<\/div>\n

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