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Life Insurance: Don’t Overlook This as Part of Your Financial Plan

Life Insurance: Don’t Overlook This as Part of Your Financial Plan

Are you looking for a way to secure your financial future, protect your loved ones, and potentially build wealth? If so, consider how life insurance can be a powerful tool in your holistic financial plan.

Life insurance has been used by savvy investors for years as a key component of their financial strategy. This Life Insurance Awareness Month, we at Intelliplan Financial want to shed light on why life insurance is more than just a death benefit — it’s a versatile financial tool that can play a crucial role in your overall wealth management plan.

More Than Just a Policy: The Importance of Life Insurance

Life insurance can be the backbone of a solid asset protection plan.

Here are just a few of the key ways life insurance can be used in multiple aspects of your holistic financial plan:

Income Replacement

If you are the primary earner in your household, your sudden passing could leave your family without the financial means to maintain the lifestyle they’re used to. A well-designed family life insurance plan can replace lost income, helping ensure your family can cover daily expenses, pay off debts, and continue living comfortably.

Debt Coverage

Life insurance can be structured to cover outstanding debts such as mortgages, car loans, and credit card balances. This prevents your loved ones from being burdened with debt in your absence.

Estate Planning

For those with significant assets or complex estates, life insurance can help cover costly taxes so that more of your legacy is passed on to beneficiaries rather than the IRS. Additionally, life insurance can be used to equalize inheritances among heirs, especially in situations where physical assets, like a family business, are being passed down.

Wealth Transfer

Life insurance policies can be an effective way to transfer wealth to the next generation, providing your beneficiaries with a tax-free inheritance. This is particularly valuable in high-net-worth families looking to maximize their legacy.

Business Succession Planning

For business owners, life insurance can fund buy-sell agreements, which helps make sure the business can continue operating smoothly after the loss of a key partner or owner. This provides peace of mind that your business legacy will endure.

Long-Term Care

Certain life insurance policies offer riders that cover long-term care costs, allowing you to use your death benefit to pay for care if you become ill or incapacitated. This feature helps both protect your savings and account for the care you need without exhausting your assets.

Protection for Your Loved Ones

Life insurance ensures that your loved ones are financially protected in the event of your untimely death. It provides them with the resources needed to maintain their quality of life, pay off debts, and secure their future.

Financial Flexibility with Access to Cash Value

A life insurance policy loan lets you Bank on Yourself® by tapping into the cash value of your permanent life insurance policy, offering access to funds without the need for a credit check. You have flexible repayment options, and the loan can be used for anything from emergency expenses, such as medical bills, or even new investments like starting a business. Best of all, the process allows you to access cash while keeping your policy active and your long-term financial security intact.

Tax Advantages

In addition to the tax-free death benefits, life insurance policies, especially whole life insurance, offer significant and sometimes lesser-known help for lowering your lifetime tax bill. When tapping into life insurance for its cash value options, you get to withdraw funds tax-free with a potential cash value accumulation that grows on a tax-deferred basis. This can be an advantageous strategy, especially in an uncertain tax environment.

Why Life Insurance is Often Overlooked

Despite its benefits, life insurance is frequently neglected in financial planning.

There is a widespread belief that life insurance is only necessary for those with dependents or significant assets. However, life insurance can be valuable at any life stage, offering benefits that go beyond just providing for children or protecting estates.

Talking about death and the financial implications of losing a loved one is uncomfortable for many. As a result, life insurance is often postponed or ignored, even though it is a critical component of a secure financial future.

Some people perceive life insurance as an unnecessary expense, particularly when they are younger and healthier. However, obtaining life insurance early can lock in lower premiums and provide coverage when it is most affordable. While life insurance is easy to put off, we at Intelliplan Financial know it can play a critical role your holistic plan.

Life Insurance from Holistic Financial Planning Professionals

While many advisors have experience providing their clients with life insurance, only one has the personal story of our founder and lead advisor, Joe Overfield, who used life insurance to lift him out of tough financial times. Many years ago, Joe discovered the many benefits of life insurance after being laid off unexpectedly, and that critical help inspired him to pursue a career aiding others on their financial journey.

When it comes to integrating life insurance into your holistic financial plan, working with a knowledgeable financial advisor can make all the difference. At Intelliplan, we’re here to offer sincere, unbiased advice and a comprehensive life insurance policy review to help you understand your options. Our goal is to help you plan smarter so you can live better.

Ready to explore how life insurance can strengthen your holistic financial plan?

Contact our team at Intelliplan Financial today for a personalized consultation. Let’s work together to create an Intelliplan for your financial future.

 

Disclosure: Financial Planning and Advisory Services are offered through Prosperity Capital Advisors (“PCA”), an SEC-registered investment adviser.  Registration as an investment adviser does not imply a certain level of skill or training. Intelliplan Financial and PCA are separate, non-affiliated entities. PCA does not provide tax or legal advice. Insurance services offered through Intelliplan Financial are not affiliated with PCA.

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Financial Planning and Advisory Services are offered through Prosperity Capital Advisors (“PCA”), an SEC registered investment adviser.  Registration as an investment adviser does not imply a certain level of skill or training. Intelliplan Financial and PCA are separate, non-affiliated entities. PCA does not provide tax or legal advice.

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