Broker Check

Planning with Insurance

While it is important to consider the use of life insurance in estate, business, and financial planning, it is equally important to understand the tax consequences of life insurance products. A financial planner should understand how to select the appropriate life insurance product to meet the client’s financial needs and how some life insurance products can be used to reduce taxes.

Strategies and uses of life insurance include:

  • providing liquidity for your estate
  • debt coverage
  • guaranteed income
  • business planning: key-person life insurance and the funding of buy-sell agreements with life insurance
  • the use of revocable and irrevocable life insurance trusts to replace assets in estate plans
  • employee benefit planning
  • the use of life insurance in charitable giving to provide income, avoid taxes, and benefit charities of your choice