Life Insurance

Life insurance provides payment of a death benefit at the death of the insured(s). However, life insurance has many unique characteristics that make it an appropriate solution for a variety of uses in addition to the death benefit protection. Some of these characteristics include:

  • Policy cash values accumulate on a tax-deferred basis.
  • Policy death benefits are received income tax-free.
  • Policy cash values may be accessed on a tax-advantaged basis.

Although often mistakenly viewed as a price only decision, the long term nature of life insurance necessitates careful consideration in the selection of the insurance carrier, the product type and the agent or agency to represent you and interact with your heirs. Some of the questions to consider in purchase include:

  • Does the agent have sufficient experience to meet your needs adequately?
  • Does the agent have any influence with the carrier selected?
  • Is the insurance carrier financially sound?
  • Does the carrier have a history of equitable treatment of existing policyholders?
  • Will the service levels provided by the carrier satisfy your requirements?
  • Will the product be able to adapt to changes in your personal and financial goals or situation?
  • Are the pricing assumptions of the product economically sound?
  • If a term purchase, what products are available if conversion occurs? Are these products comparable to the current marketplace?
  • Does the agent have a business succession plan that provides for continued service after the retirement or death of the original agent?

Issues such as the ones above highlight the power of the M Financial Group. Member Firms are comprised of successful and experienced professionals in the business. The collective buying power of M allows Member Firms to utilize more favorable pricing experience than off-the-shelf products and to garner special service considerations. Reinsurance through M Reinsurance allows Member Firms to have greater insight into the pricing fundamentals of various policies. These and other advantages through the M Financial Group make selection of a Member Firm as your representative a prudent choice.

Purposes of Life Insurance

Life insurance is used in many personal, business and charitable contexts. Some of the most common uses of life insurance are:

Business

  • Key Employee: provides funds to aid in the search for a replacement in the event of death of a key employee.
  • Executive Recruitment and Retention: used to provide a variety of non-qualified benefit programs to help attract and retain key employees.
  • Business Continuation: provides funds to aid in the continuation of business in the event of death of a key revenue generator.
  • Succession Planning: provides liquidity to purchase the ownership interest of a deceased owner.
  • Debt Protection: creates a pool of money that can be used to pay off lines of credit.

Personal

  • Family Protection: provides a source of cash for surviving family members to utilize for living expenses.
  • College Funding: provides a funding source for college education of children or grandchildren.
  • Debt Protection: generates cash to pay off an existing mortgage or other personal debt.
  • Wealth Creation: provides funds to leave as an inheritance or to equalize inheritances among family members.
  • Estate Tax Liquidity: creates liquidity to pay estate taxes rather than requiring liquidation of existing estate assets.
  • Gifting Leverage: leverages the use of the annual gift tax exclusion, the applicable exclusion, and/or Generation Skipping Transfer Tax exemption.

Charity

  • Wealth Replacement: used with many charitable gifting programs to replace for heirs the value of estate assets that were gifted to charity.
  • Gift Creation: used to create a significant donation to charity at death.
  • Gift Leverage: used to maximize the eventual charitable donation at the death of the insured.