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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 at
your occupation, this insurance can replace up to 55% 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.
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.
Segregated funds can help you grow and protect your estate's assets
in the following ways:
- Financial Guarantees
Regardless of market performance, segregated funds guarantee 75 to 100
percent of your principle investment at the maturity date (usually 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.
- Death Benefit Guarantees
Upon death, 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.
- 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.
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
Take the next step…talk to a life-licensed advisor.
Our Life-Licensed Investment Advisors are here to help recommend
the solutions that are best for you. To learn more, please
contact an advisor today.
Or, ask an advisor to contact
you.
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