Life insurance reasons

Don’t buy life insurance until you ask these THREE questions!

#1: Do you even need life insurance?

The only reason you need life insurance is if you lack the financial resources to fill a financial gap if you were to die

3 Common Gaps

-Family

  • Maintain quality of life

-Financial Obligations

  • Estate taxes
  • Buy out business partner

-Charitable Impact

#2: How much life insurance do you need?

  • Run a cash-flow analysis
  • Then reverse engineer the amount to cover costs a certain # of years
  • Think about equality between family members if that’s important to you (take business and other inheritances into account)

#3: How should you pay for your life insurance?

-Out of pocket (premium paid to insurance company)

-Third Party (someone else is paying, ie parent, business)

  • Keep in mind, there are rules involved
  • Get qualified financial advice first

-Borrow

  • More complicated
  • Get qualified, competent financial advice from someone who specializes in risk management and focus on premium financed life insurance

-Business Owner BONUS!

  • Certain retirement plans (specialized defined benefit plans or defined benefit focus plans) have built-in life insurance policies
  • Decreases taxes, boosts retirement and life insurance
  • Not every business owner qualifies, so check with a qualified financial professional to see if you qualify

Obstacles

Life insurance is often sold aggressively, without regard to the buyers needs. Always be sure to get a second opinion from an expert before investing. Know your options!

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Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Gold Family Wealth, LLC), or any non-investment related content, made reference to directly or indirectly in this newsletter will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this newsletter serves as the receipt of, or as a substitute for, personalized investment advice from Gold Family Wealth, LLC. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. Gold Family Wealth, LLC is neither a law firm nor a certified public accounting firm and no portion of the newsletter content should be construed as legal or accounting advice. A copy of the Gold Family Wealth, LLC’s current written disclosure statement discussing our advisory services and fees is available upon request. If you are an Gold Family Wealth, LLC client, please remember to contact Gold Family Wealth, LLC, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services.

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