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Building a Life Insurance Portfolio

We believe an insurance portfolio is as important as an investment portfolio. We advocate not merely layering insurance policies over time, but implementing a systematic program that marries a strategy between your needs and achieving your financial independence.

Some questions to consider when you think about life insurance:

  • How long will you need the coverage?
  • How much coverage is appropriate?
  • What is the insurance to accomplish?
  • What types of coverage (term or permanent) are right for you?
  • Can you use the built up cash values for retirement and other goals?

We are committed to maximizing the power of your premium dollars. Our clients’ portfolios will often include a blend of term insurance to cover specific short-term needs and permanent contracts such as Universal Life, Variable Life and Whole Life for longer-term goals and wealth accumulation.

Life insurance can be used for risk management as well as building wealth – an additional asset in your investment portfolio.

How? Cash value contracts enjoy several tax and other benefits:

  • Cash values grow tax deferred
  • Tax beneficial withdrawals of cash values
  • Income tax-free transfers to heirs
  • Estate tax-free transfers to heirs when utilizing an irrevocable trust
  • No mandatory withdrawal at 70 ½ like retirement plans
  • No 10% penalty for “early” withdrawals like retirement plans

Using life insurance for permanent death benefit protection only.

There are Guaranteed Universal Life insurance policies that have a No-lapse Secondary Guaranteed Death Benefit. The key feature of this type of life insurance is that the insurance company promises to pay the death benefit irrespective of the size of the policy’s cash value, even if it is zero, as long as the required premium is paid. This additional guaranteed death benefit is called a Secondary Guaranteed Death Benefit. The benefit is secondary because it is in addition to the death benefit guarantee that is provided by the guaranteed interest, mortality and expense charges of the policy.

For an explanation of the different types of insurance coverage that are available, please contact us.

At Lang Financial, our hallmark is to answer your questions, help you explore your options and assist you in making the right decision.
Contact us.

Insurance

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