Sapiens qui prospicit…Wise is one who plans ahead
Life insurance is a powerful tool that can create liquidity and overcome challenges that arise as part of the wealth and succession planning process of affluent families. At Global Wealth Financial, we architect solutions to manifest liquidity through life insurance and premium financing strategies that address these challenges.
4 Reasons Families Consider Life Insurance
1. Succession Commitments
By using life insurance to pay off the estate taxes due upon one’s death, you protect other assets from having to be liquidated, such as real estate, shares in a business, and/or your investment portfolio. Your beneficiaries will have the liquidity necessary to continue the family legacy and honor the financial commitments of the estate.
A common obstacle in estate planning involves uncovering the most efficient means to overcome debts and other financial obligations associated with the deceased, and the estate in general. Identifying and addressing coverage gaps in your existing strategies affords your heirs the ability to settle outstanding accounts without liquidating valuable assets.
2. Financial Protection at all Stages of Life
A life insurance policy is a unique asset class with several advantages. As a liquid, profitable asset that does not participate in market downturns, life insurance policies allow for tax-efficient death benefits to resolve estate liquidity at the end of life; but also grow cash values that can be accessed during the insured’s lifetime.
3. Family & Legacy Planning
Families are diverse and each member of your family has unique strengths and financial needs. As part of your family’s business succession goals, life insurance can help equalize your estate, ensuring your business assets pass to those working within the business and that the same value is set aside for those who are not. The nature of a sound life insurance strategy allows you to address these differences fairly and in advance. A thoughtful benefit distribution can prevent discord among your heirs.
It is important to ensure that everything you have built for your family is able to continue to thrive. A life insurance policy ensures that your family has enough liquidity to maintain your family’s business, properties, and current quality of life long after you are gone.
The ultimate goal of any sound life insurance plan is to leave a sustainable legacy of stability and security that protects your family and loved ones for generations to come. Unlike investments and other financial vehicles, life insurance is a tool designed specifically for legacy purposes and will help your family retain its financial standing long after you are gone.
Need never takes a holiday. Leveraging life insurance to protect the continued services of your preferred charitable causes is a legacy unto itself. In addition to providing for your family, a life insurance policy can have an outsized impact on the causes most important to you.
4. Business Planning
Your business has grown on the strength of your contributions and vision. Replacing your commitment will require capital and planning. Properly funding a succession agreement through life insurance can afford a business the flexibility and time needed to move forward in a competitive market ensuring that everything you have worked hard to create continues to flourish.
When a business partner passes away, their share of the business will need to be reassigned to minimize the impact of their loss and ensure a smoother transition for the remaining shareholders. A properly strategized and funded buyout agreement provides the necessary structure to avoid ownership uncertainty.
Ensure a partner’s share of a business is reassigned properly if that partner dies or otherwise leaves the business. A buyout agreement, properly strategized and funded through life insurance, provides the necessary structure and peace of mind.
4 Reasons Families Consider Premium Financed Life Insurance
1. Succession Commitments
Estate Taxes
By using life insurance to pay off the estate taxes due upon one’s death, you protect other assets from having to be liquidated, such as real estate, shares in a business, and/or your investment portfolio. Your beneficiaries will have the liquidity necessary to continue the family legacy and honor the financial commitments of the estate.
Debt Payoff
A common obstacle in estate planning involves uncovering the most efficient means to overcome debts and other financial obligations associated with the deceased, and the estate in general. Identifying and addressing coverage gaps in your existing strategies affords your heirs the ability to settle outstanding accounts without liquidating valuable assets.
2. Financial Protection at all Stages of Life
Asset Class
A life insurance policy is a unique asset class with several advantages. As a liquid, profitable asset that does not participate in market downturns, life insurance policies allow for tax-efficient death benefits to resolve estate liquidity at the end of life; but also grow cash values that can be accessed during the insured’s lifetime.
3. Family & Legacy Planning
Estate Equalization
Families are diverse and each member of your family has unique strengths and financial needs. As part of your family’s business succession goals, life insurance can help equalize your estate, ensuring your business assets pass to those working within the business and that the same value is set aside for those who are not. The nature of a sound life insurance strategy allows you to address these differences fairly and in advance. A thoughtful benefit distribution can prevent discord among your heirs.
Income Protection
It is important to ensure that everything you have built for your family is able to continue to thrive. A life insurance policy ensures that your family has enough liquidity to maintain your family’s business, properties, and current quality of life long after you are gone.
Provide a Legacy
The ultimate goal of any sound life insurance plan is to leave a sustainable legacy of stability and security that protects your family and loved ones for generations to come. Unlike investments and other financial vehicles, life insurance is a tool designed specifically for legacy purposes and will help your family retain its financial standing long after you are gone.
Funding of Charitable Causes
Need never takes a holiday. Leveraging life insurance to protect the continued services of your preferred charitable causes is a legacy unto itself. In addition to providing for your family, a life insurance policy can have an outsized impact on the causes most important to you.
4. Business Planning
Business Succession / Key Executive Planning
Your business has grown on the strength of your contributions and vision. Replacing your commitment will require capital and planning. Properly funding a succession agreement through life insurance can afford a business the flexibility and time needed to move forward in a competitive market ensuring that everything you have worked hard to create continues to flourish.
Buy-Sell Agreements
When a business partner passes away, their share of the business will need to be reassigned to minimize the impact of their loss and ensure a smoother transition for the remaining shareholders. A properly strategized and funded buyout agreement provides the necessary structure to avoid ownership uncertainty.
Ensure a partner’s share of a business is reassigned properly if that partner dies or otherwise leaves the business. A buyout agreement, properly strategized and funded through life insurance, provides the necessary structure and peace of mind.