Maximize Your Legacy With Life Insurance

Maximize Your Legacy With Life Insurance

Advantages of life insurance:

  • Life insurance death proceeds are typically paid income tax-free to the policy beneficiary
  • Life Insurance policies within an irrevocable trust may exclude estate taxes
  • Equivalent annual contributions into a taxable investments account would require higher returns and greater risk

Client Assumptions Policy Assumptions – John Hancock Protection UL
Female Premium $500 per month
Age 45 Premium Years Life Pay
Preferred Best Non-tobacco Death Benefit $1,378,928
Life Expectancy: 83 Income Tax Rate 35%

The internal rate of return at age 83, life expectancy, is 7.86%.  The equivalent in a taxable account equates to 12.09%!

It is common for people to designate assets for a specific purpose.  For example, money in a savings account may be used for a down payment on a home or an IRA used for retirement income needs.  In many cases, people also set aside assets to provide a legacy for children, grandchildren or a charity.

With proper legacy planning, it’s possible to increase assets by a significant amount, secure your legacy and minimize or eliminate the impact of income and estate taxes by using life insurance.

Contact the life sales team to assist in maximizing your clients’ legacy.