The sages of old have long decreed that death and taxes are two inevitable certainties. Ok, then. But, what they didn’t know was that whole life insurance can be part of a solid financial strategy for mitigating the sting of each. While taxes can be negotiated, death cannot. And, while death cannot be negotiated, life insurance policy structures and premiums can. Premiums come in all shapes and sizes. Premiums, like those of a 20 pay life insurance policy can be satisfied in a relatively short period of time, while other premiums can be amortized over a much longer period. Regardless of how you satisfy your premiums, doing so will satisfy your reasons for paying them in the first place.
Death and Taxes – The Two Great Reasons
On par with the inevitability of death and taxes is the contractual inevitability of your whole life insurance policy – as long as you pay the premiums. A well-structured policy addresses the inevitable by providing:
- Lifetime coverage
- Tax-free death benefits to beneficiaries without probate
- Purchases of policies within a trust to be designated to pay estate taxes upon someone’s death
- Policyholder ability to increase the cash value savings component through tax-deferred interest accumulation, excess premium payments designated toward the cash value and reinvestment of earned dividends into the cash value.
Be confident that you can protect and preserve the fruit of your hard work with a well-designed whole life insurance policy. Start planning today.