07 May Life Insurance–What’s Important?
Life insurance is critically important because it provides protection when it is needed the most. Thoughtful planning is required. There’s much to consider: What is the purpose (loan protection, estate planning, to fund buy-sell agreements)?Is a split-dollar agreement or deferred compensation agreement appropriate?Is the primary purpose tax avoidance?How long will the coverage be needed?How should the premium be paid, and by whom?Should I buy term insurance or permanent insurance?What are the valid options?Should my accountant be involved, or my attorney? Life insurance planning can be complex. It’s easy to get bogged down in the details and lose sight of what’s important. Don’t let it overwhelm you. Keep what’s important at the forefront of your mind and in your sights, and work with an advisor to help you through the process. Life has no guarantees Over 70% of Americans don’t have enough life insurance for their families to maintain their current standard of living, and if 2020 and COVID-19 have taught us anything, it should be that life has no guarantees. Knowing what agreements to use and learning how to avoid unnecessary taxes are undoubtedly important. Still, agents need to begin every life insurance discussion with “How much life insurance will it take to protect...