If You are using Life Insurance as Death Insurance you are missing a Huge Opportunity.

Life insurance is quite possibly one of the greatest human inventions and one of the most misunderstood tools of all time. To really get the full benefit of life insurance you need to fully understand what all of the uses are for the Living. Now maybe you are thinking there are no uses for the living, because someone has to die for someone else to benefit, and that is where you would be wrong.

The Rich get Richer through Education

The financially educated use insurance completely different then the financially uneducated middle class and poor. Most of America with college and post-graduate educations have a third grade financial education.

Life insurance is not in case you die.

Real Life Insurance is in case you LIVE a really long time, become Disabled or Die.

In case You Live a really Long Time

First and most importantly,it’s called a life insurance policy because it has the ability to produce a lifetime of tax-free income for the owner of the policy. If set up properly you can receive tax-free non- reportable income from an insurance policy throughout your retirement. This income comes from the dividends the policy pays the policy holder. This payout does not change the death benefit to your heirs. So you can have your cake and eat it too.  The wealthy love this feature and it is why they use policies to take in their income in retirement. The money that comes in is not reported on a tax return and no income tax is due. A great advantage in the U.S. tax code that estate planners use to shield their clients. Middle class people are told to do just the opposite by part-time sales people who don’t understand tax law and estate planning..

In Case you Get Sick or Injured

More bankruptcies and foreclosures are caused by illness than any other factor. When you can not work and generate income then you can’t fund your retirement either. Most people don’t realize that as soon as you go on disability at work they stop funding your 401k or IRA. So if you are long-term disabled your retirement plan just died the day you stopped working.

The right Life Insurance plan will have a waiver of premium that funds the insurance and the cash contributions you were making toward your policy. Having a term policy or a cash value policy without this provision is insane. It is more likely you will get sick during your working years than die so make sure you protect your potential risk for disability.

In Case you Die

News flash we will all expire at some point, maybe tomorrow and maybe 90 yrs from tomorrow. One of the great tax advantages is you are allowed to leave millions to your heirs through life insurance, tax-free.  The wealthy have been using insurance as an estate planning tool for years. The living benefits out weigh the benefits in death but most look at Life Insurance as something for their children or spouse and not as the best way to create a private pension plan. What other vehicle in the financial world allows for enjoyment and use of assets while you are alive. In addition there will be cash for your heirs after you expire, all tax-free.

Its time to take action and get a better financial education so you can develop a better plan for your life and the lives in your family. You have no idea how sweet life can be with a plan that works. Call me today so that I can introduce you to a team that can help you learn what you need to know to succeed.

Mark Fuller

Wealth Management -410-484-2717


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