7 May 2012 0 Comments

When You Need “Perm” Not “Term”

Now, it’s time to discuss when “Perm”, not “Term”, is necessary.  If term is the lowest price for pure death benefit protection, why would you ever pay more?  Here’s an overview of what I’ll be covering:

  •  An interesting alternative to a Roth IRA.

We’ll take a look at a very interesting alternative to a Roth IRA using Indexed Life Insurance.  You’ll be amazed at by what I show you, but beware of the risks.

  • Pension Maximization.

When a married worker is retiring with a monthly pension, there may be a way to maximize current income and provide greater flexibility without disinheriting a spouse.  This solution calls for both Term and Permanent Insurance.

  • Avoid taxation of annuities to heirs.

If you plan to leave a deferred annuity to an heir there is a way to increase the inheritance and avoid both estate and income tax at your death.

  • Equalize inheritances.

Want to leave a house or business to one child, but equalize inheritances to other kids?  Permanent Life Insurance can help.

  • Estate Planning.

Permanent Life Insurance owned outside the estate can provide liquidity to avoid a fire sale of assets required to satisfy the IRS.

  • Contractual obligations.

You may have a business or domestic obligation that must be paid whenever you die.

  • Confidential cash for special situations.

If cash going to a new partner or dissident family member through normal channels would cause a problem, consider life insurance.

  • Continuing income needs at advanced ages.

You may be at retirement age chronologically, but financially need to continue working.  Term just doesn’t work after certain ages.

  • If Conversion is the only answer.

When your term insurance is coming to an end or the premium is skyrocketing, you may have no choice other than to convert to Whole Life if you can’t qualify for anything else.

  • Charitable bequests.

Your legacy will live on with your school, church or humanitarian organization long after you are gone.

  • A love letter to your spouse or kid.

Will you really want to stop your insurance at the end of that term policy?  I’ll share my personal experience with you.

So, here we go…each of these situations covered in more detail.  One or more of them is likely to apply to you. 

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