Life Insurance is being widely used by estate planning attorneys, CPA's and other advisors for creditor protection, tax deferred asset, to provide death benefit protection, preserve assets and additional retirement income.
- Provides protection from creditors and locks the insurance plan from any law suits that may occur. (Except IRS.)
- Secures a way to transfer wealth for estate taxes, legacy for family inheritance, charity and other personal reasons.
- Provide financial funding to grandchildren's education and to insure financial needs for handicapped family members after your death.
- It can be placed in a trust, (ILIT) Irrevocable Life Insurance Trust to be sure the death benefit does not add to your estate, thus preventing you from having to pay estate taxes on the insurance face value amount.
- Once a policy is paid up, it can be reserved and used for additional retirement benefits, TAX FREE.
- It can also be premium financed so the insured pays little or no premium by using collateral instead of capital.
- Provide living benefits for your family upon an early death.
In summary life insurance can complete your estate plan and give you peace of mind without a lot of additional expense.