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Craig Lundquist, MBA, ChFC®, CRPC®
VP of Wealth Management
651-773-2757
Kristin Becker
Senior Administrative Assistant
651-773-2821
Ideal Wealth Advisors
Located at Ideal Credit Union
8499 Tamarack Road
Woodbury, MN 55125
CRPC conferred by College for Financial Planning
March/April 2022
Life Insurance Can Serve Many Purposes
You may think of a life insurance policy* only as financial protection for your family if something were to happen to you or your spouse. But life insurance can offer more benefits that you may not have considered.
Supplement Retirement Income
If you no longer need your permanent life insurance policy’s death benefit to provide income for your family, you may be able to make withdrawals** of the cash value to add to your income in retirement. Your insurer can go over the withdrawal options. Keep in mind that any cash value growth beyond your premium payments will be taxed as ordinary income, so plan withdrawals to minimize the tax hit.Take Out a Loan
You can access the policy’s cash value through a loan.** You’ll pay interest, but not taxes, on the loan amount. The death benefit will be used to repay any unpaid loan balance.Transfer Wealth to Heirs
Consider using life insurance to benefit your children, grandchildren, or other heirs. The beneficiary(ies) of your life insurance policy generally will receive the proceeds income-tax free. Life insurance can also be used to equalize an inheritance when only some siblings will receive an asset, such as a home or business.Put it in a Trust
An irrevocable life insurance trust (ILIT) is an option to consider if the policy’s death benefit could cause your estate’s value to exceed the federal estate tax exemption amount of $12.06 million for 2022 (indexed for inflation). Remember, once established, this trust is irrevocable.
* Applications for life insurance are subject to underwriting. No insurance coverage exists unless a policy is issued and the required premium is paid. Accessing cash values may result in surrender fees and charges and may require additional premium payments to maintain coverage and will reduce the death benefit and policy values. Guarantees are based on the claims-paying ability of the issuer.
** If tax-free loans are taken and the policy lapses, a taxable event may occur. Loans and withdrawals from life insurance policies that are classified as modified endowment contracts may be subject to tax at the time that the loan or withdrawal is taken, and if taken prior to age 59½, a 10 percent federal tax penalty may apply. Withdrawals and loans reduce the death benefit and cash surrender value.
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Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. Ideal Credit Union and Ideal Wealth Advisors are not registered as a broker/dealer or investment advisor. Registered representatives of LPL offer products and services using Ideal Wealth Advisors, and may also be employees of Ideal Credit Union. These products and services are being offered through LPL or its affiliates, which are separate entities from and not affiliates of Ideal Credit Union or Ideal Wealth Advisors. Securities and insurance offered through LPL or its affiliates are:
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