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Asset Protection

When most people think of insurance, they think about life, home and auto insurance. With the help of our Life-Licensed Investment Advisors, you can also take advantage of a number of asset protection strategies made possible through several key insurance solutions.

We offer the following solutions to help protect your estate's assets:

 

Living Benefits Insurance

Living benefits products not only protect your wealth, they give you the financial freedom to maintain your lifestyle or obtain the care you need in the event of an injury or illness.

  • Disability Insurance
    Personal disability insurance helps protect one of your greatest assets —your ability to earn an income. If sickness or injury keeps you at home for a sustained period of time and you are unable to work, this insurance can replace up to 66% of your income. Disability insurance is an ideal way to help ensure that you and your family can continue to maintain the lifestyle you desire without eroding your portfolio or other assets.

  • Critical Illness Insurance
    Upon diagnosis of a serious illness such as cancer, stroke or a heart attack, critical illness insurance provides a lump sum benefit that may be used in any way you wish. For example, you might use the funds to seek advanced private care to aid in your recovery. If you own a business, you could also use the benefit to keep your business running smoothly until your return.

  • Long-Term Care Insurance
    Considering the high cost of private care, this type of living benefit is an excellent way to protect your retirement savings and other assets. Long-term care insurance provides the necessary funds to pay for additional health care should you need assistance caring for yourself for an extended period. Funds are paid as a daily benefit to cover the cost of either home visits from a qualified individual or a room at either a public or private care facility.

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Segregated Funds

Like mutual funds, segregated funds are professionally managed and invested in a portfolio of securities. However, segregated funds are also insurance contracts that offer additional benefits such as a guarantee of your principle investment on death or at maturity, and guaranteed lifetime income.

Segregated funds can help you insure your retirement and maximize your estate in the following ways:

  • Lifetime Income Guarantees
    Many segregated fund contracts offer income guarantees that will ensure you have a predictable and sustainable retirement income stream that you will not outlive. They guarantee that you will receive 100% of your principal paid back to you over time and that payments will continue as long as you live.

  • Death Benefit Guarantees
    Upon the death of the annuitant, a guarantee between 75 and 100 percent of your initial deposit, or the greater of your investment value, will flow directly to your named beneficiaries.

  • Estate Settlement Benefits Proceeds of a segregated fund policy held in a non-registered account can pass directly to your named beneficiaries, without passing through your estate. Therefore, these funds are not subject to probate, lawyer’s or executor’s fees. However, your estate is taxed on any applicable gains.

  • Financial Guarantees
    Regardless of market performance, segregated funds guarantee 75 to 100 percent of your principle investment (less withdrawals) at the maturity date (a minimum of 10 years from the date of your deposit). At maturity, the greater of the current market value or the guarantee will be paid to you.

  • Potential Creditor Protection
    When there is no reasonable expectation of bankruptcy at the time of your investment, and a “family class” beneficiary is named, a segregated fund can also potentially safeguard your assets from potential creditors in the future.

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Tax-Exempt Life Insurance

We can help you significantly enhance the value of your estate by passing along more assets than you could otherwise achieve through a purely investment-driven strategy. One of the main ways we can help you do this is through tax-exempt life insurance.

Like a pension or non-registered account, tax-exempt life insurance serves as another asset within your overall portfolio—with some unique advantages.

Under the federal Income Tax Act:

  • Assets accumulate within a tax-exempt life insurance contract free of annual accrual taxation
  • When you pass away, any proceeds of the policy distributed to beneficiaries, including the initial insurance coverage and any accumulated assets, are done so on a tax-free basis, outside the scope of your estate

What's more, tax-exempt life insurance also provides:

  • The potential for tax-free income during retirement
  • Funds for paying the tax liabilities incurred within your other pools of capital

To learn about the different types of coverage and how you can use tax-exempt life insurance in your overall estate plan, please contact a Life-Licensed Investment Advisor (opens new window).

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Insured Annuities

An insured annuity allows you to transfer a portion of your wealth and serves as an important asset protection and income enhancement solution.

An annuity is a contract that binds an issuer to provide you with a steady stream of income payments in return for a lump sum deposit. With an insured annuity, a portion of each of your annuity payments covers the premiums on an insurance policy, which ensures that an amount equal to your original capital is provided to your beneficiaries when your estate is settled. As with any annuity, an insured annuity is irrevocable once purchased.

Insured annuities provide the following benefits for your estate:

  • Upon death, your beneficiaries receive an amount equal to your original deposit
  • Proceeds avoid probate and can be issued directly to your beneficiaries without cost or delay

An insured annuity also allows you to:

  • Maximize your after-tax retirement income without increasing investment risk
  • Earn a pre-tax equivalent yield likely unattainable with most fixed-income investments
  • Lower your amount of payable taxes
  • Reduce the overall value of your business and limit your capital gains liability

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Take the next step…talk to an advisor.

Our Investment Advisors are here to help recommend the solutions that are best for you. To learn more, please contact an advisor (opens new window) or ask an advisor to contact you.