Why Buy a Permanent Life Insurance

Most people are familiar with term life insurance and know about whole life insurance when it comes to a permanent life policy, but is that all there is? If you want an overview of the different types of life insurance, watch this video I did. In this video I break down the different types of life insurance and biases you may find among life insurance agents or financial advisors.

At Top Financial Agency we have access to about 50 different life insurance carriers. We can provide term, whole, IUL, GUL, or even ROP Term life insurance. ROP term insurance is a term policy that will refund your premiums if you outlive your term.

Retirement Planning Insurance

Life insurance should be the foundation of your retirement planning. If you build assets and pass away or end up with a major illness, life insurance can help you pay for the assets. If you own a home, mortgage life insurance is a must.

But, life insurance can also help with your retirement planning by providing income. Retirement planning insurance will typically be a permanent type of life insurance like an IUL or a whole life policy. An IUL is not a guaranteed life insurance product, but has the potential to grow more income and last past age 100.

The cash value that grows in your life insurance policy can be loaned against and potentially create tax free income, since loans are generally tax free.

Life Insurance Financial Planning

Life insurance passes down to your family probate free, meaning it's tax free. That makes life insurance a great asset in your tool box. If you're passing down other assets that are not tax free like traditional IRAs or 401ks, life insurance can be used to cover the taxes so your beneficiaries are not burdened by taxes. If you're passing down assets to a non profit, keep in mind that they generally do not pay taxes for gifts. You can pass an IRA to a charity and life insurance, which is tax free, to your family. This way, you're strategically passing down your assets tax free.

If you're ready to start your retirement and life insurance plan book a free consultation here.