The Tax Incentives of Life Insurance

One of the most important aspects of my job as a Financial Representative is helping my clients and their families gain financial security in a tax efficient manner.  With the return of the Estate Tax looming in 2011 it is more important than ever for people to address their estate planning needs.

The 2011 Budget calls for a $1 million exemption level and a top rate of 55% on taxable estates.  One important tool I recommend to all my clients as a means to counteract this tax in your estate planning is through Permanent Life Insurance.

Permanent Life Insurance can be an important estate planning tool.  As long as insurability requirements are met and premiums are made, life insurance creates an estate –possibly a sizeable estate-not limited by the insured’s net worth or the nature or value of other assets.  With few exceptions, the life insurance provided liquidity is not subject to income tax for the beneficiary.  Moreover, with proper estate planning, the value of the life insurance is not subject to estate, inheritance, or gift taxes.  Thus, there are tax incentives for including life insurance in your estate plan. 

Contact the law offices of Debra G. Simms, P.A. for an estate planning consultation.  Call our toll free number at:
Debra G. Simms

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