Lawyers have unique requirements and concerns when it comes to insurance.
Lois Warren & Associates understand these fundamentals and apply strategic objectivity and discretion to determine a tailored solution for each client that best protects their practice and their families.
TAX EXEMPT LIFE POLICIES
These are complex products and need careful consideration. These policies allow for tax-deferred growth and eventual tax-free receipt upon death. An excellent tool for estate planning, a policyholder of a tax-exempt policy can request a tax-free loan from the insurer to supplement retirement. If the loan remains in good standing the loan repayment does not occur until death. Essentially you can use your life policy as a retirement vehicle.
Disability insurance is designed to replace a lawyer’s income should they become unable to do the essential duties of their occupation. The policy pays out tax free amounts monthly until age 65. The are now provisions in these contracts to continue coverage until age 70.
CRITICAL ILLNESS INSURANCE
Critical illness insurance endows when the insured’s health changes. There are 22 covered conditions including activities of daily living. Unlike disability insurance, this policy issues a single lump sum payment in 30 days. Critical illness is a separate risk and does not offset payments from a disability policy. Therefore, you could successfully claim on both.
This policy is designed as a second pension. This policy pays out a tax-free income should the insured require nursing care at home or in a facility. Therefore, other assets do not need to be sold to pay for long-term care.
INSURANCE AND ESTATE PLANNING
Life insurance is an essential tool when it comes to transferring wealth to the next generation. It is more cost efficient to use life insurance instead of other assets that experience tax if sold at fair market value.
Allowing the opportunity to participate in market performance without risk and providing a bonus each year your money remains in the contract; a variable annuity can offer flexibility that preserves and grows money. While structured annuities are a typical choice, they often have lower rates of return. In a low interest rate environment, our strategic management of variable annuities can provide clients a better rate of return without market risk.