If you live near the stadium in Santa Clara, your house might be valued around $1.4M. Do you have enough life insurance with face amount equal to the value of your house? Your life insurance at work is only around $100k and only valid while you are employed in the same company. Do you have an income disability insurance to protect you during income loss?
Today’s permanent life insurance has guaranteed return of around 4% and is also a place for cash accumulation. You may use your irrevocable life insurance trust and make annual gifts to the trust to pay for the life insurance premiums. The trustee applies for insurance on your life. The trust is the owner and beneficiary of the life insurance policy.
At your death, the insurance company (e.g., Guardian Life, Allianz, etc) sends your trustee the policy’s death benefit proceeds income tax free. This allows the trustee to purchase assets from your estate , when the time is right. Without the life insurance, your estate would lack the liquidity to pay any estate settlement costs.
- Permanent life insurance is an asset that is not affected by stock market fluctuations.
- Over and above the value provided by your whole life policy, there is an optional feature that not everyone has, but it provides even greater benefits as a portfolio asset. The Paid-Up Addition Rider (PUA) allows the purchase of additional paid-up insurance with flexible payment options and at favorable rates to enhance the policy’s value. Extra dollars can work harder here, boosting values at an accelerated pace.
Ask advice from your estate planner, CPA, financial planner and life insurance agents. Contact Connie Dello Buono for life insurance at 408-854-1883 email@example.com CA Life Lic 0G60621 with offices in San Ramon, San Jose and San Mateo.