Lightpath serves many different clients with a variety of financial planning needs. Like them, your needs are as individual as you are. As such, our team is proud to provide you with professional guidance and an array of financial planning and wealth management services that can be personalized to fit your situation.
Death Benefit + Living Benefits = A win for both you and your beneficiaries.
Life insurance can be a valuable asset in your overall financial strategy, offering much more than just death benefit protection.
With the ever-changing economic landscape, the limitations of traditional investments like IRAs and 401(k)s and the potential impact of taxes, you may be wondering what options you have to create a more tax-efficient strategy. Offering tax-deferred accumulation along with distribution and transfer capabilities, life insurance can be a supplemental solution to help address your financial concerns.
What makes life insurance so unique? The IRS tax code.
The IRS tax code allows life insurance cash values and death benefit proceeds to receive tax advantages that are truly unique. These benefits include:
- Tax-free death benefit
- Tax-deferred accumulation
- Tax-free distributions
- Tax-free accelerated death benefits
If helping loved ones maintain a standard of living and avoid financial hardships after your passing is a priority for you, life insurance products can help. A general rule is that you may want to seek coverage between 8-12 times your gross annual income. As far as the various types of policies go, they can generally be placed into one of two categories: term and permanent.
Term insurance generally provides coverage for a specified period of time and pays out a specified amount of coverage to your beneficiaries only if you die within that time period. A permanent insurance policy, on the other hand, will stay permanently in effect for the rest of your life, as long as premiums continue to be paid or there is sufficient value in the contract to cover the ongoing expenses and cost of insurance to keep the policy in force.
What is your time worth?
Need assistance with retirement planning, investment management, education funding, tax planning, or estate issues? We invite you to enjoy a complimentary consultation with one of our financial planners.