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Insurance Services / Risk Protection* What risks are you exposed to that could crumble your financial pyramid?
The largest and most important part of any pyramid is the base. The higher points of the structure may get more attention, but a strong foundation is what holds everything together. If you don't have a solid financial base, your pyramid can crumble or become severely damaged during the slightest financial storm. Imagine requiring hospitalization, yet you have no health insurance. What would you do, cash in your mutual funds? Or imagine the small business owner who puts the bulk of his/her money in bonds, gets sued and doesn't have liability insurance. Key components are:
Does everyone need the same products? Of course not! But, you need to know what you have, why you have it and what it will and will not do. Is the pricing and value competitive? Risk Protection & Life Insurance Be aware of your options in the area of life insurance and position yourself more favorably when possible. Review the insurance products that you own and get a second opinion on any new products that you are considering adding to your portfolio. Ask yourself....what do you have? Why do you have it? Will it do what you want and need? Is the pricing and value competitive based upon the marketplace? Life insurance companies, product pricing, plans of insurance and benefits have changed dramatically over the past decade. Older life insurance contracts that may be accumulating dust, rather than value, in a safe deposit box, can frequently be used to significantly improve current risk protection, tax planning, estate planning, and charitable giving situations. Many of these older generation policies are eligible for tax-free exchange to more comprehensive and compelling plans. Newer products are often better suited to meet today's more sophisticated needs and applications. Policies That Can Be Exchanged Tax-Free*
Risk Protection & Long Term Care
** It's never too early to start thinking about long-term care insurance. Concerns about long-term health care affect people at many ages and the need for long-term care arises when a person is unable to care for himself/herself after an injury from a major accident, or a chronic debilitating illness. As such, planning for long-term care needs and the protection of assets is a fundamental ingredient of any financial planning process. Fortunately today, Americans are not only exploring long-term care insurance plans, but they are internalizing the benefits of transferring the substantial risk of long term care expenses to an insurance company rather than being willing to accept the substantial financial burdens themselves. Estate Planning A substantial part of an estate may be used to pay expenses, leaving only a small residue available for heirs and beneficiaries. Taxes, fees, debts and administrative expenses all must be paid before an estate can be settled. Thus, knowledge of what has happened to other estates is valuable when developing an estate plan.
Estate Tax Planning Calculator To receive quotes or to obtain additional information, contact our Director of Insurance Services by clicking here. *Please read the tax & investment disclaimer accessible on the home page. 1Provided payments begin no later than under the old contract. Endowment 2Contracts must meet definition of life insurance. In Letter Ruling 644016, the IRS accorded non-recognition treatment under IRC Sec. 1035 to the exchange of one annuity contract for two annuity contracts, all issued by the same insurance company. Such Private Letter Rulings are not binding on the IRS for other taxpayers. The Tax Court in Conway vs. Comm., 111T.C. No. 20, (1998) ruled that transfer of a part of the funds invested in one annuity contract to a second annuity qualified as a nontaxable exchange under IRC Sec. 1035. Not all annuity companies allow partial transfers. A single policy may not be exchanged for one on multiple lives, e.g., a second-to-die policy.) Some exceptions for troubled insurers. Rev. Proc. 92-44 and 92-44A 3 In Letter Ruling 644016, the IRS accorded non-recognition treatment under IRC Sec. 1035 to the exchange of one annuity contract for two annuity contracts, all issued by the same insurance company. Such Private Letter Rulings are not binding on the IRS for other taxpayers. The Tax Court in Conway vs. Comm., 111T.C. No. 20, (1998) ruled that transfer of a part of the funds invested in one annuity contract to a second annuity qualified as a nontaxable exchange under IRC Sec. 1035. Not all annuity companies allow partial transfers. A single policy may not be exchanged for one on multiple lives, e.g., a second-to-die policy.) Some exceptions for troubled insurers. Rev. Proc. 92-44 and 92-44A |
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