KHTS Radio Santa Clarita Radio – Santa Clarita News
Hosts: Arif Halaby & Jeff Girard
Topic: Life Insurance as a form of wealth transfer
Total Financial Solutions Safer Money Hour – August 15, 2017
Life Insurance: how do you know if it’s right for you? On this episode of Total Financial Solutions Safer Money Hour, Arif and Jeff discuss the intricacies of life insurance and how it is can be a valuable option for transferring wealth to the people of need in your life, whether they be children, spouse, etc.
Life insurance has the potential to be important if properly utilized in a comprehensive retirement plan, helping loved ones recover from financial risks and unexpected costs, increasing their chances of reaching long-term goals and dreams.
Life Insurance as Wealth Transfer
If you have a disabled child:
If your child will need ongoing support sucha s medical care or assisted living should purchase cash-value insurance. Specifically, a survivorship-whole life or unviersal life policy pays out to heris only after both parents pass away.
If you are leaving a charitable legacy:
A cash value policy is a good gift to charitable organizations.
If you are considering estate planning:
An irrevocable life trust can transfer all rights to the policy to the trust and you cannot revoke, terminate or modify it going forward. The proceeds, upon your death, avoid taxation and are sheltered from creditors. Such liquidity of enables the ability to pay estate/inheritance taxes and funeral expenese without having to sell illiquid assets.
If you are considereing an investment:
“If you have ample funds and are looking to get rid of a little every month, it would not be irrational to buy a whole-life, universal-life or variable-life policy, where the cash value grows income tax-free as long as the policy is held until death,” says Hunt of the consumer federaiton of america.
How to Utilize Life Insurance
Protect Your Income in Retirement:
If your family depends on your income, it should be the basis of any solid retirement plan because you can’t invest your way out of an untimely death. When a spouse passes away, the survivng spouse may struggle to meet income needs. Life insurance can be used to iensure enough money is available to replace any lost social security or other income.
Keep Your Retirement Savings on Track
