Life insurance, for those who qualify, can be a powerful way to manage risk, liabilities—personal, estate, or business—and accomplish unfinished goals and objectives for those left behind.
Types of insurance vary—from basic term, universal, index, whole, to variable—adapting to individuals, multiple lives, and second-to-die purposes for personal, business, trust, and estate use.
It serves as a means to protect and transfer generational wealth, eliminate debt, provide streams of income, buy out a partnership, pay off a business, replace a key person in a company, and more. Above all, it provides a feeling of well-being, knowing that choices have been preserved and potential fire sales or bankruptcies avoided.
Life insurance can also benefit the living, potentially providing creditor protections, tax-deferred growth, balance sheet assets, borrowing ability, tax-free income, no capital gains, and ultimately a death benefit that may be tax-free if properly structured (IRC 7702).
Ultimately, your money pays for it, but your health determines the outcome.
Once a decision is made with your legal and tax advisors to move forward with the purchase, an initial assessment and health discussion need to take place to determine if any conditions exist that may concern underwriting.
This can impact approval or denial, cost of insurance, coverage amounts, and what will remain on your record.
In some cases, pre-formal underwriting communication can play a key role in choosing the best carriers and securing optimal coverage before submitting the formal application. Working with sophisticated and experienced underwriters who have access to multiple carriers can make all the difference in the outcome.