The Life Insurance Conversation™
Life insurance is unique among financial planning tools. Unlike other risks we insure against, death is not an if—it’s a when. That reality makes the life insurance conversation different from any other insurance discussion advisors have with clients.
Life insurance can either be rented (term) or owned (permanent). Many clients begin by renting coverage while they are building wealth, paying down a mortgage, and raising children. At that stage, they may see little value in owning permanent coverage.
However, life circumstances—and perspectives—change over time.
Quality term insurance can play an important role in planning because it allows clients to lock in insurability while they are healthy and maintain the option to convert to permanent coverage later—without additional underwriting. Some products also offer chronic illness riders, adding flexibility should health needs change.
Change is the Only Constant
Younger families often need substantial life insurance protection to safeguard their family or business in the event of an early death. As financial plans evolve, flexibility becomes increasingly valuable.
Well-designed, quality term coverage provides added flexibility by preserving future options while addressing immediate protection needs.
Life Insurance is the New Stretch IRA
When the SECURE Act eliminated the Stretch IRA, Ed Slott began referring to life insurance as “the new Stretch IRA”. A client with a large IRA balance might decide to utilize life insurance to pay the income tax or replace the IRA balance if they donate some of the IRA to a charity. If their health has deteriorated, a quality conversion option can be of great value.
Why Life Insurance is the New Stretch IRA
Legacy Planning with IRA’s
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