Legacy Planning
Life Insurance is Meant for the Living
Leaving a legacy means a lot of different things. Whether you're someone who wants to leave a financial legacy or someone who wants to live your financial legacy, there are different strategies and products to help you accomplish that. One of the best ways to achieve either result is life insurance. If you’re waiting until you die to utilize life insurance, you might be doing it wrong. After all, it’s called life insurance—not death insurance. But there are a lot of options out there. So which policy can help you the most in retirement? Well, this depends on your strategy. Although most people buy life insurance for its death benefit, there are a myriad of ways to utilize it while you're alive.
Live Your Life (Insurance) to its Fullest
What kind of life insurance should you have? Well, what kind of life do you plan to have in retirement?
Term Life Insurance
Basically you're renting coverage - you never own anything. Do you want to rent all your life or would you rather own? This type of coverage is straightforward and a popular choice for younger people who need a death benefit, but in reality this can be the most expensive type of life insurance you'll have the option to purchase over your lifetime.
Universal/Variable Life Insurance
For the risk tolerant individual, these types of insurance allow investing your premiums into financial products like mutual funds. But as the name entails, the product is variable. Five Pathways looks to always put our client in the best situation possible, so although we believe there's a place for every product, we will never sell these products due to their variability and continual increase of their underlying cost.
Indexed Universal Life Insurance
Although a relatively newer product, this was the insurance industry's answer to market enthusiasts. With the potential for higher returns based on market performance and a floor to protect your money from loss, this product has its place in certain strategies; however, it does have a rising cost of insurance component which needs to be addressed.
Whole Life Insurance
This product has stood the test of time, going back over 200 years. There's a reason why the super rich utilize whole life insurance more than any other group of people: it can be modified to accomplish multiple strategies at once and create a zero-tax legacy if used correctly. There are new strategies out there that make whole life worth looking at again if it's been a while. Remember, if you're using it as death insurance, you're not using it correctly.
Work with us and learn how to use your policy strategically alongside your other assets.
Review Your Assets
Strategically consider your options. Get the right combo of cash and coverage.
Review Your Goals
Are you trying to leave a tax-free estate or eliminate Uncle Sam? Is your goal to convert your qualified accounts to Roth or are you looking for long term care coverage?
Nail the Timing
Know how and when to utilize the appropriate policy.
Win at Life
Don’t get sold. Get informed.