INSURANCE IS A VALUABLE TOOL EVERYONE SHOULD CONSIDER
In today’s world there are many uncertainties, but without being humorous, the one certainty we can rely on is each of us has a mortality schedule and will pass away. The hope for many is that we can live a full life and live into our 80’s or 90’s. With today’s technological advancement along with modern medicine, individuals are living much longer than anticipated. Insurance can be misconstrued as a “bad” word, very similar to the word “credit card”. Insurance can be an extremely valuable tool if used correctly and used in the right scenarios and planning situations. There are two main areas of focus in our Las Vegas insurance services practice with the use of insurance, Insurance Annuities, and Life Insurance.
WHY IS LIFE INSURANCE SO IMPORTANT?
Life Insurance is in my opinion as a Certified Financial Planner a major pillar in any planning process. Life Insurance offers many benefits that you cannot receive with traditional investments such as tax-free income, deferred growth, tax-free withdrawals, and asset and creditor protection in some states. The most basic type of insurance is Term. Term insurance can be a great tool because it can be cost-effective and can serve a great short-term purpose. Insurance companies love selling term policies because it is reported less than 5% of policies ever get a claim on term policies. Permanent Life insurance policies, also known as Whole life and universal life policies, have very powerful benefits as well. When I use permanent Life Insurance policies with clients for planning, we primarily use this asset class for two purposes: Income planning and Estate Planning. The big benefits of using Life Insurance as an income tool is if structured correctly, all income is tax-free! Estate planning is a very general phase but to keep this concept simple, life insurance can be a great leverage tool to take 1 dollar and make it worth potentially 4 or 5 dollars as a benefit to pay for a future liability.
WANT TO KNOW MORE?
We described Insurance very generally, but if you are interested in a more detailed explanation of how annuities or life insurance may make sense for you please take the time to contact me. With many changes over the recent years to market conditions, interest rates, more competition, it may be worthwhile to get an insurance review which we can do for you to make sure you have the best options available to you. You can find my contact information in the yellow section below to find out more about the Las Vegas insurance services we offer.
Annuities are long-term investments designed for retirement purposes. Withdrawals of taxable amounts are subject to income tax and, if taken prior to age 59½, a 10% federal tax penalty may apply. Early withdrawals may be subject to withdrawal charges. Optional riders have limitations and are available for an additional cost through the purchase of a variable annuity contract. Guarantees are based on the claims paying ability of the issuing company.
We also offer a wide range of other services including custom wealth management strategies. Be sure to take a look.