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Avraham "AY"  Rappaport, CLTC

President, Financial Professional


Yaniv "Jay" Natanov

President, Financial Planner


Eli Rappaport

Vice President, Financial Planner


Shlomo Rosenstein

Financial Professional


Ozzie Marizan

Financial Planner


Joseph Greer

Employee Benefits Administrator


Sarah Tutko

Senior Client Support Manager


Premier Financial

6395 Dobbin Road, Suite 102

Columbia, MD 21045


Phone:  240-309-6001




March/April 2022

Life Insurance Can Serve Many Purposes

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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Premier Financial is not affiliated with Prudential Financial. Premier Financial sells insurance products of Prudential Financial's affiliated insurance companies in addition to products of non-affiliated insurance companies. Premier Financial is authorized to sell and service certain insurance products of Prudential Financial companies as well as use this material. Premier Financial 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. Sarah Tutko is employed by Eli Rappaport and not The Prudential Insurance Company of America or its subsidiaries.
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