SUBSCRIBE
Enter your Name and Email address to get
the newsletter delivered to your inbox.
Please include name of person that directed you to my online newsletter so I can thank them personally.
1021223-00006-00
David P. McCabe,
WMCP®, ChFC®, CLU®
Financial Planner
Nathaniel D. High, RICP®
Financial Planner
Nicholas J. Over, CFP®
Financial Planner
Sara E. Martin
Client Relations Manager
Jennifer A. McCabe
Client Relations Specialist
jennifer.mccabe@prudential.com
Centuria Financial Group
2333 Baltimore Blvd Suite B
Finksburg, MD 21048
Phone: 443-952-7232
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.
1054796-00001-00
CONTACT US
Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.
Centuria Financial Group is not affiliated with Prudential Financial. Centuria Financial Group sells insurance products of Prudential Financial's affiliated insurance companies in addition to products of non-affiliated insurance companies. Centuria Financial Group is authorized to sell and service certain insurance products of Prudential Financial companies as well as use this material. Centuria Financial Group and its representatives do not give tax or legal advice. Please consult with your own advisors regarding your particular situation. Offering financial planning and investment advisory services and programs through Pruco Securities, LLC (Pruco), under the marketing name Prudential Financial Planning Services (PFPS), pursuant to a separate client agreement. Offering insurance and securities products and services as a registered representative of Pruco, and an agent of issuing insurance companies. 1-800-778-2255. Sara E. Martin and Jennifer McCabe are employed by David McCabe and not The Prudential Insurance Company of America or its subsidiaries.
This newsletter is general educational information provided by a Prudential Financial Professional and is not intended to market or sell any specific products and services, but rather provide general information about the subject matter covered only.
Centuria Financial Group and LTM Marketing Specialists LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative.
The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.