Life Insurance

Protecting what matters most

Life Insurance is an important part of your overall Financial Plan and you should make sure your coverage is adequate to meet your objectives. Your goals are constantly changing depending on what is happening in your life. Start with a policy review. Does your policy:

  • Effectively meet your goals in providing liquidity to meet your financial obligations?

  • Is your policy performing efficiently as originally projected?

Why consider life insurance?

Whether you want to protect your wealth for the future, business, family and loved ones, life insurance can help you maintain consistency and continuation towards your wealth goals.

Protection and Preservation

Including life insurance as part of your financial plan can help maintain your current needs and transfer wealth in the future by:

  • Ensuring surviving family are taken care of through a death benefit

  • Providing liquidity to help pay estate taxes, fund a buy-sell agreement, manage estate administration expenses, or pay long-term care expenses

If You…

  • Have a taxable estate

  • Are a business owner

  • Have an active tax investment strategy

  • Are the primary income earner in your family

LIFE INSURANCE CAN HELP YOU…

  • Craft a multi-dimensional estate plan

  • Develop a succession plan for your business

  • Plan for efficient wealth transfer

  • Maximize tax benefits

  • Secure liquidity for life events

  • Long-term care expenses

Life Insurance Review

Any of these life events could cause a need to add or subtract from your present coverage. A proper life insurance review entails more than just a review of your death benefits. Policy reviews should include:

  • Premium and performance analysis to ensure your policy(s) is performing on a cost-effective basis (Whole Life, Universal Life, Variable Life)

  • Ownership and Beneficiary Designations to ensure that the policy is set up correctly and will meet your specific needs.

In the event of your death, life insurance provides money directly to your beneficiaries. The cash proceeds may be used for such needs as:

  • Make up for your lost income

  • Fund child's education

  • Paying off household debt

  • Paying for your funeral and other related expense

While regular reviews are important, certain events are more likely to change your coverage needs. Some life events that can cause you to review your coverage are:

  • Births and Deaths

  • Marriages and Divorces

  • Starting a business

  • Purchasing a home or additional real estate or refinancing a mortgage

  • Received an inheritance

  • Creating an Estate Plan

  • Change in Job Status

  • Charitable Giving needs

Many Life insurance carriers are available through LC Advisor

Through our carrier partners we help you, your family and your business access competitive options for meeting your planning objectives.

Your overall wealth objectives drive the process

Our goals-based approach to financial planning helps you identify, plan and execute strategies based on your unique situation. We can provide customized strategies and funding designs that considers you, your family and your business goals. We work with you and your other advisors in coordinating your overall financial and estate plan, cash flow needs and gifting strategies that meet your planning goals.

Product selection, underwriting and on-going policy administration

Accessing our insurance resources and working together with your tax, legal and financial advisors help you select product offerings that work in harmony with the rest of your portfolio.

We continually conduct a thorough due diligence process on the products and carrier partners we make available to clients. Carrier ratings and competitiveness of specific products are examples.

The underwriting process may be challenging caused by underlying client medical conditions. We work diligently to gather the medical information needed and then negotiate the best possible underwriting offers for meeting client objectives.

The funding and payment of premiums for life insurance is a commitment clients make for meeting their goals. It is important the policy is performing as expected. Regular policy reviews are scheduled to make sure the policy(s) are performing and meeting evolving needs.

Types of life Insurance

There are two primary types of life insurance: term and permanent. The Policy that best suits you depend on your goals and investment time horizon.

Term Life Insurance

  • Coverage is temporary, typically for a set period

  • Lower premiums up front

  • No cash value

  • Death benefits are income tax-free

Term life insurance policies generally include 10-, 15-, 20- and 30-year time horizons.

Permanent Life Insurance

  • Permanent coverage for your entire life

  • Higher premiums up front

  • Potential to accumulate cash value

  • Death benefits are income tax-free

Types of Permanent

  • Whole life insurance

  • Universal Life

    • Guaranteed universal life insurance

    • Indexed universal life insurance

    • Variable universal life insurance

  • Long-term care (LTC) life insurance

    • Hybrid LTC life insurance

    • Universal life with a LTC rider

Estate Planning with Life Insurance

Irrevocable Life Insurance Trust (ILIT) is a trust that is structured to own one or more life insurance policies to help shield assets from estate taxes.

Maximize Wealth Transfer to Your Beneficiaries

An ILIT is a common way to own life insurance policies to meet estate planning objectives. At death, the life insurance policy funds the ILIT and because the policy is owned by the ILIT it is outside the taxable estate. The liquidity that is created in the ILIT is used to cover expenses and taxes related to the estate. Today’s ILITs are more flexible than those created in the 1980’s.