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Wealth Transfer and Preservation
When you consider the years of effort you invest in accumulating your assets, you want to make sure those assets pass on to the next generation as efficiently as possible. Cash value life insurance is a unique tool that can help you transfer your wealth more efficiently, by taking advantage of certain tax benefits.
A Unique Tool to grow your assets
A tax-efficient wealth transfer strategy
Cash value life insurance is a unique financial tool that can help you grow more assets and pass them on to loved ones and important causes while potentially reducing erosion due to taxes.
One tax-efficient wealth transfer strategy is repositioning a taxable asset into a tax-deferred asset, such as a cash value life insurance policy, to potentially create new wealth that previously didn’t exist. When properly structured, the tax benefits include:
- Tax-deferred growth of cash value in the policy
- Tax-free access to the policy’s cash value
- Income tax-free transfer of wealth in the form of a death benefit
Thereby allowing you to pass on a greater inheritance.
Using a life insurance policy to transfer your wealth
Life insurance offers the unique advantage of repositioning an asset that can be a tax liability into one that has the potential to grow to create more wealth and pass on to the next generation tax-efficiently. Using life insurance to transfer your wealth lets you:
- Increase your financial legacy – The death benefit you leave passes on income-tax free to beneficiaries, allowing you to potentially pass on a greater after-tax inheritance.
- Reduce taxes – Assets like CDs, stocks, bonds and mutual funds typically generate taxable earnings and may be taxable each year or when you access the asset. You can reduce ongoing taxation of these assets by repositioning the assets, or a portion of them into life insurance.
- Create new wealth – Because it’s replacing a once idle, taxable asset, a cash value life insurance policy that grows tax-deferred can potentially create wealth where it previously didn’t exist.
Any type of permanent, cash value, life insurance can be used for this strategy, but certain policies may make more sense depending on your goals. Work with your Ameriprise financial advisor for what will work best for your situation.
Why choose Richard S. Bernstein & Associates?
With so many options from which to choose, deciding on the life insurance policy that’s best for your needs can be a challenge. Our licensed professionals will provide you with a comprehensive needs analysis analyzing your needs, budget, and risk tolerance to determine the type of policy that’s right for you. Being in the insurance business since 1964, Richard S. Bernstein personally works to obtain the best underwriting offers for you with the best insurance carriers and will provide you with an array of options to meet your needs.
If you would like for one of our experienced life insurance advisors to examine your individual needs, offer our expert advice, and give you a quote, please fill out the box above to contact us today.
