Life Insurance is What’s Next

Personal Planning

A successful financial plan evolves to ensure clients have the tools they need to protect their wealth, achieve their goals, and leave a lasting legacy. The final step when first implementing most financial plans is to consider whether a client’s life insurance portfolio is properly aligned with both their personal and corporate needs. Whether a client is underinsured, needs to review existing coverage, or has an identified need with no coverage in place, a comprehensive review of the financial plan can identify gaps where life insurance can provide a solution, establishing funding for both estate and corporate planning needs.

For personal planning, a life insurance need is often driven by a client’s net worth, estate tax exposure, income, and legacy objectives. Life insurance can serve a variety of purposes, providing liquidity and flexibility when it is needed most.

The death benefit can help heirs fund federal and state estate or inheritance taxes, provide liquidity to an estate, or fund an irrevocable trust for long-term wealth transfer. Life insurance can also support income replacement, charitable giving, business and estate equalization, and other legacy objectives.

For clients seeking additional diversification, a properly structured permanent policy may also provide cash value that grows on a tax-deferred basis and may be accessed on a tax-free basis, when the policy is properly structured.

The first step in determining the appropriate amount of coverage is understanding the client’s complete financial goals. Since the same underwriting can be used for both personal and business coverage on the same insured, understanding the full scope of the client’s needs before implementing coverage can create greater planning efficiency. Reviewing both the personal and corporate financial plan can help identify potential liquidity needs, estate tax exposure, existing coverage, and planning gaps. Once a life insurance need is identified, contact us to help evaluate the coverage amount, policy design, and product options that best align with the client’s objectives.

We welcome any questions or opportunities to assist you or your clients in achieving identified goals. We take pride in serving a select number of families, businesses, and charitable institutions each year, and we look forward to hearing from you.