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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
May/June 2024
Hidden Talents of Life Insurance
When someone mentions life insurance, what comes to mind? Most people think they are either content knowing they have enough coverage to meet their needs or concerned because they know they need to obtain coverage. While the primary purpose of life insurance is to protect loved ones, it has other talents.
Help Leave a Meaningful Inheritance
You can potentially give a greater after-tax inheritance through your life insurance policy than other assets. Redistributing some assets you hold in taxable accounts into a life insurance policy may allow you to potentially reduce ongoing taxation. Because the cash value in a life insurance policy grows tax deferred, you also gain an opportunity to grow the assets. With this strategy, you potentially create new wealth for your heirs.For example, say you’d like to leave your family home (or business) to your daughter but do not want to short-change your other child. You could purchase a life insurance policy on your life to equal the home’s value and name your second child as the beneficiary. Then, your other assets could be split equally among your children. Note that as the value of your home increases, you’ll want to increase the amount of life insurance you have.
Simplify Transfer of Business Interests
Have a business partnership? Using life insurance in your and your partners’s business succession planning can help smooth the transfer of the business interests when one partner dies. Owning life insurance on each other’s lives gives the surviving partners money needed to compensate the deceased partner’s family for that partner’s business interest through the insurance proceeds the surviving partners receive.Meet with your insurance professional to review your needs and circumstances and help determine how you can make the most of life insurance’s hidden talents. And use the opportunity to look over your (and your partners’s, if applicable) succession strategy in light of your insurance review and any family or business changes that may have occurred since the last review.
*Applications for life insurance are subject to underwriting. No insurance coverage exists unless the required premium is paid to put an issued policy in force. Accessing cash values may reduce the death benefit and policy values, trigger tax consequences, surrender fees, and charges, and may require additional premium payments to maintain the contract. Guarantees are based on the claims-paying ability of the issuer.
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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.
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