Personal Life Insurance Strategies

Life insurance is perhaps the least understood of products in the world of personal finance and in business. Many financial advisors do an excellent job of helping you accumulate and grow your portfolio and that is their primary focus. However, few financial advisors admit to understanding life insurance strategies completely and therefore may not incorporate them into your planning, with any enthusiasm. We work with many financial planning teams that do a wonderful job where we assist them and many other teams where we are always struggling with trying to educate them on the benefits that can be achieved with life insurance. We just take a different approach with the clients we work with directly and look at life insurance options as an integral part of your planning from the onset of our relationship with you.

We believe that there is a reason why life insurance companies continue to prosper.

Many clients want true and predictable value of their investments and with guarantees unavailable in other financial instruments.

In these uniquely uncertain times this fact alone makes life insurance-based strategies more valuable. Once clients are properly informed and their objectives are defined, insurance products often rise to the level of prominent choice.

Westland Wealth does not believe insurance provides a strategy for every situation, but we do understand its role in retirement planning. When included in a well-managed investment portfolio, insurance products reduce volatility and uncertainty and increase predictability, thus potentially reducing financial and emotional stress.

Consider this: Many retirees suffer a lower than desired standard of living because of their desire to leave something behind for their children or grandchildren. Yet by including a life insurance strategy in their portfolio they can determine in advance precisely the amount they are willing and able to provide as a legacy no matter when that time comes. Once in place, they are then free to invest the remainder of their assets in such a way that could maximize the amount of income they can achieve from the remainder of their assets.

The above strategy is only one example of how life insurance may benefit a retiree and his/her family. When you want to leave a legacy, we know enough to determine if life insurance can or should be presented as an option depending on circumstance and health. Only by understanding that this option exists can a person make an informed decision regarding the issue of legacy planning.

Other Life Insurance Strategies include:

  • Providing capital to maintain or enhance the income of a surviving spouse.
  • Providing liquidity to pay estate taxes and other costs without requiring estate assets to be liquidated.
  • Providing access to a death benefit, while alive, to provide the additional income needed to pay for long-term convalescent care.
  • Providing specific tax-free “gifts” to grandchildren for college education or other capital needs as they enter adulthood.
  • Creating a tax-efficient plan to save for retirement and receive tax free “Roth like” income without the limits of IRS or ERISA options.
  • Protecting a business from the unexpected death of a key employee.
  • Allowing a business to carve out, reward, bonus and keep executives with solutions to achieve additional compensation, protection and retirement income.