Permanent life insurance policies were designed to last a lifetime. Once upon a time, lifetime was defined as age 100 since few people lived past age 100.
As of 2001, with medical advancements and better healthcare outcomes, the new actuarial tables (CSO 2001) reflected more people living past age 100. From an insurer’s perspective, lifetime began to be defined as age 121.
The 2018 tax return will be the first tax season under the 2017 Tax Act. Below are 8 tax tips to consider as you sift through opportunities to maximize tax savings.
Those of us in the life insurance business know that life insurance is so basic and foundational that we must never stop asking this one question. In fact, life insurance is so fundamental to our country’s economic health that the U.S. tax code encourages its purchase.
That’s a powerful endorsement of the value we bring families.
Life insurance protection is the foundation of a family’s future, providing cash exactly when it is needed most to:
A life insurance policy offers benefits no other financial vehicle can offer because of its tax favored status, its flexibility, and the leverage and liquidity it provides families. At the same time, life insurance can be complex and clients and their other financial advisors would be wise to seek the help of a life insurance specialist to navigate the complexity and deliver simplicity to the process of purchasing a policy, or exchanging or transferring an existing one. Here are 10 things not to do with a life insurance policy:
Listen to this…
In 2016, Northwestern Mutual conducted a research study exploring attitudes and behaviors of Americans toward money, financial decision-making and issues that impact long-term financial security in American culture. The study surveyed over 2,600 Americans ages 18 and older.
Employers own life insurance policies on the lives of their employees for various reasons. Often it is to informally fund a non-qualified benefit plan for key employees. Other times it is used to facilitate the transfer of the business at the unexpected death of a key person, another owner, or a shareholder.
Although new rules for employer-owned life insurance policies (EOLI) went into affect over a decade ago, many financial professionals are unfamiliar with them. The rules have been included as part of the provisions of IRC §101(j) and apply to all policies issued after August 17, 2006. If they are not complied with, the life insurance proceeds at death will be subject to income taxes.
