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You may already realize that life insurance is important when it comes to protecting your family. But did you know that Life insurance is also a tool that can help you to meet many of your financial goals?
Why Accumulate Assets in Your Life policy?
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At Vestis Insurance Agency, the life insurance products which we offer are designed with integrity and solidly backed by companies with a history of financial strength.
Whole Life Insurance
We offer a selection of products, tailored to meet your unique needs, that feature level and guaranteed* death benefits.
Survivorship Whole Life Insurance
Second-to-die policy offers guaranteed* death benefits, lower level premiums, and may offer an increase in cash values and dividends after the first death. These features, along with a long list of unique, very marketable riders, make second-to-die policy a competitive solution to estate and business planning.
Term Life Insurance
A wide-range of yearly renewable term products offer coverage starting at $100,000 and all are convertible to any permanent life product in the portfolio.
L i f e I n s u r a n c e as an A s s e t C l a s s
Why It Makes Sense
Holding diversified assets, such as real estate and stocks, has always been seen as a smart move because they will generally have noncorrelated returns. This means that while some assets may go down in value, others may increase in value—balancing your overall portfolio.
A life insurance policy is also an asset, providing noncorrelated returns, liquidity and tax advantages. While some might consider the premiums an expense, life insurance is an asset that will provide cash, as promised under the contract, at death to designated beneficiaries. The amount paid by the insurance company at death will not be impacted by market conditions.
Below are four reasons why a life insurance policy should be considered an asset.
Assets come in all shapes and sizes, and so do their growth patterns. No one has a crystal ball so trying to determine what the value of these assets will be in the future is limited. Life insurance, however, can provide an expected, predictable, and sometimes guaranteed value depending on the type of policy that is purchased. For the payment of a specific premium, the specific death benefit will be paid should the policy holder pass on tomorrow or 20 to 30 years from now.
Noncorrelated to Market Performance
Many asset portfolios are comprised of stocks, bonds, and mutual funds that may be volatile and fluctuate frequently. Unfortunately, having a strong, highly valuable investment portfolio today does not necessarily mean that today’s value will eventually be passed on to your loved ones. Life insurance, with the exception of variable universal life insurance, is not tied to market performance. Having an asset in your portfolio that is noncorrelated to market performance is tantamount to being diversified.
For many individuals, the majority of their assets are comprised of their businesses, real estate properties, and other illiquid assets. This can present a huge problem when trying to cover final expenses, estate taxes and other costs associated with wealth transfer. Life insurance can provide immediate liquidity upon the death of the insured. Also, liquidity from a life insurance policy is not limited to death since, depending on the type of policy, cash values can also be accessed while alive, should the need arise.*
Income Tax Advantages
Finally, having tax-advantaged assets as part of your portfolio is usually a goal. Unfortunately most investments do not grow tax-deferred (unless they are in a qualified retirement plan or IRA) and even if they do, they may not pass on income tax-free to your loved ones. Life insurance is a great choice since it can provide both—cash values may grow tax-deferred and when the insured passes away, the death benefits are income tax-free.
* Loans and withdrawals will affect the cash value of the policy and could affect the death benefit. Amounts received on withdrawals and surrenders may be subject to federal income taxes and/or company-imposed surrender penalties.
* Guarantees are based on the claims-paying ability of the issuing insurance company
What is the value of working with an independent insurance agency?
Choice, Customization and Advocacy in insurance and financial services.
Vestis, a independent agency represents multiple top-rated carriers so we can offer you a variety of coverage choices and help you customize a plan that provides the protection you want from the company that best suits you.
The choice is yours.
• Choose your insurance policy
• Compare a variety of insurance companies
• Evaluate services offered
• Customize coverage
• Assist you when you have a claim