Tax-Free Life Insurance: An Untapped Investment for the Affluent

IT’S viewed as an insider’s secret for the affluent: a legal way to invest in hedge funds and other potentially lucrative assets, all without paying taxes on the gains. But private placement life insurance, as it is known, is still unfamiliar to many wealthy people — and trickier to design properly than even some savvy investors realize, tax lawyers and financial advisers say. “It sounds so good — ‘I can invest tax-free and get the money’ — but it’s actually very complex,” said Jonathan Blattmachr, a retired estates and trusts partner from the Milbank Tweed law firm in New York: [Read More].

How to get the most from this tax-free source of retirement income

This cash value accumulates without being subject to capital gains taxes, and the interest rate it accumulates can beat what you’ll get in a traditional savings account. “It’s been one of my best fixed-income investments because the cash value grows at more than 4% a year consistently,” said Glenn Daily, a fee-only insurance consultant in New York. It’s “a low-risk and tax-deferred fixed-income investment with easy access to policy loans: [Read More]

Long-Term Care and Final Expense Insurance

Long-Term Care Insurance gives you the financial means and the support options you desire. Whether you require in-home visits, assisted living, or skilled nursing care, Long-Term Care Insurance lifts the burden from those around you, improving the quality of life for yourself and for everyone you hold dear. Your family will always come first. You would not want them to bear huge and unexpected financial burdens at the time of your passing. No matter what your age, it´s absolutely essential to have a plan in place to protect your loved ones when you are no longer able. Final Expense insurance will pay for your funeral service, bills, and other associated costs.

The Purpose Of Life Insurance

Your need for life insurance will vary with your age and responsibilities. The amount of insurance you buy should depend on the standard of living you wish to assure your dependents. You should consider the number of assets and sources of income available to your dependents when you pass away. Social security benefits, available cash, and other sources of income and investments may not provide the standard of living you have in mind.

Life insurance helps bridge the gap between the financial needs of your dependents and the amount available from other sources, which is the amount to be provided by life insurance. Your agent or another financial advisor can help you with these calculations. The Internet, as well as many financial magazines, books, and articles, are available to help you as well: [Read more]