Why Permanent Life Insurance Can Be An Ideal Estate Planning Tool

While the stock market may be hitting some new high marks these days, there are still likely some investors who have vivid memories of the 2008 recession and market downturn – and the painful financial losses that came along with it.

Because of that, there some who have turned to less “risky” investments such as money markets, CDs, and even good old fashioned cash. Unfortunately, though, while these financial vehicles may not be seeing the “red” that the stock market losses produced several years ago, as far as a long-term monetary tool, they could still prove to be losing propositions.

The Price You May Pay For Your Safety

The “price” that those who have turned to for these safer investments has come in the form of extremely limited growth – which, in some cases, may even be lower than 1%. And, when compared with the rate of inflation, these assets are actually continuing to lose buying power each and every year.

From a short-term perspective, this is not good – but over a 20 or 30-year period of time, this can be disastrous to someone who may be seeking funds to live off of in retirement.

How to Reposition Assets for More Positive Results

The good news is that there is a solution for repositioning these assets that can not just produce better results in terms of financial return, but can also provide additional benefits, too. This comes through cash value life insurance.

By shifting even just a portion of these assets over to a permanent life insurance policy, an investor has the potential to gain a much more competitive rate of return on the cash value component of the policy. In doing so, future purchasing power can also be protected.

In addition, other benefits can also be gained, such as:

  • Tax-free death benefits for heirs
  • Preservation of capital for beneficiary(ies) – which could include loved ones, a business, and / or a charity
  • Potential for living benefits that allow cash for long-term care and / or other lifetime needs

Same Funds, More Expanded Uses

By simply taking the same funds and repositioning them, it can be possible to obtain vastly different benefits – and potentially higher return – from the very same dollars. It can also be possible to substantially increase what is received by heirs.

In order to determine how you can set up a life insurance plan that works for you and your specific financial goals, talk to us. We work with more than 40 different life insurance carriers – so we can find the plan that best fits your needs.