{"id":18,"date":"2019-10-14T21:19:55","date_gmt":"2019-10-14T21:19:55","guid":{"rendered":"http:\/\/gpswp.com\/aawealthsolutions\/?page_id=18"},"modified":"2019-10-17T22:12:41","modified_gmt":"2019-10-17T22:12:41","slug":"life-insurance","status":"publish","type":"page","link":"https:\/\/gpswp.com\/aawealthsolutions\/services\/life-insurance\/","title":{"rendered":"Life Insurance"},"content":{"rendered":"\n

Life\ninsurance offers multi-faceted retirement strategies.<\/em><\/strong><\/strong><\/p>\n\n\n\n

Although some people view life\ninsurance as a way to replace lost income or pay off debt after the passing of\na loved one, it also can offer a number of potential benefits that may make it\na valuable tool to accomplish different financial goals in retirement.<\/p>\n\n\n\n

First and foremost, life insurance\nmay provide peace of mind and a degree of comfort for the policyholder (the\ninsured) that their loved ones (the beneficiaries) are taken care of\nfinancially in the event that they pass away. In addition, life insurance can\nbe a sensible strategy for many small business owners to help protect the\nfinancial future of their business if something should happen to them. <\/p>\n\n\n\n

In addition to a death benefit,\nhowever, life insurance is also one of a few types of products that may offer\nhelpful ways to reduce or avoid certain taxes. Some of these benefits may\ninclude:<\/p>\n\n\n\n

Death benefits:<\/strong><\/h2>\n\n\n\n
  • Policy death benefits paid to beneficiaries may be\n income tax-free.<\/li>
  • Some life insurance policies may allow the death\n benefit to be accelerated out before the insured\u2019s death due to terminal\n or chronic illness, and that benefit may be income-tax free.<\/li><\/ul>\n\n\n\n

    Tax-free exchanges:<\/strong><\/h2>\n\n\n\n
    • The insured may exchange their existing life insurance\n policy for a new life insurance policy and the investment gains on the\n original contract may be tax free.<\/li>
    • The insured may exchange their existing life insurance\n policy for an annuity and the investment gains on the original contract\n may be tax free.<\/li><\/ul>\n\n\n\n

      Policy cash values:<\/strong><\/h2>\n\n\n\n
      • Cash values may grow tax-deferred during the insured\u2019s\n lifetime.<\/li>
      • Income from cash value, when properly structured, may\n not be subject to income taxes.<\/li><\/ul>\n\n\n\n

        As an independent insurance firm, we\nare able to shop dozens of insurance carriers to find rates and product\nsolutions to fit your specific needs and goals, meaning we are not relegated to\nsimply one line of products or one brand name like a captive agent. In\naddition, we offer complimentary reviews on your existing life insurance contracts.<\/p>\n\n\n\n

        Guarantees are backed by the financial strength and\nclaims-paying ability of the issuing insurance company.  Policy loans and withdrawals will reduce\navailable cash values and death benefits, and may cause the policy to lapse or\naffect any guarantees against lapse. \nAdditional premium payments may be required to keep the policy in\nforce.  In the event of a lapse,\noutstanding policy loans in excess of unrecovered cost basis will be subject to\nordinary income tax.  Withdrawals are\ngenerally income tax-fee, unless the withdrawal amount exceeds the amount of\npremium paid.  Policy loans are not\nusually subject to income tax unless the policy is classified as a modified\nendowment contract (MEC) under IRC Section 7702A.  However, withdrawals or partial surrenders from\na non-MEC policy are subject to income tax to the extent that the amount\ndistributed exceeds the owner\u2019s cost basis in the policy.  Tax laws are subject to change.  Clients should consult their tax\nprofessional.  Keep in mind that most\nlife insurance policies require health underwriting and, in some cases,\nfinancial underwriting. <\/p>\n","protected":false},"excerpt":{"rendered":"

        Life insurance offers multi-faceted retirement strategies. Although some people view life insurance as a way to replace lost income or pay off debt after the passing of a loved one, it also can offer a number of potential benefits that may make it a valuable tool to accomplish different financial goals in retirement. First and […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":6,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_links_to":"","_links_to_target":""},"yoast_head":"\n\n\n\n\n\n\n\n\n\n\n