from Robert C. Smith, PLC, Chartwell Capital Advisors
As lawyers and advisors, we strongly believe in proper business succession and estate planning, and the proper use of life insurance to fund these needs. Great wealth can be created and preserved through smart legal counseling and discipline. For many reasons, existing life insurance policies should be reviewed annually. Just today, one of our major carriers lowered its pricing. We offer free reviews and comprehensive evaluations of existing policies for all AIA members. Often times, these policies can be replaced with price, terms, and benefits that are simply better.
BRAVE NEW WORLD
Over the past few years, traditional life insurance has undergone a metamorphosis. Life insurance has become an extremely flexible investment vehicle:
- Its purchasing power has never been greater,
- New dynamic policies can be used for LONG TERM CARE, RETIREMENT or DEATH BENEFIT needs.
- Retirement Distributions are tax-free.
- Long Term Care Distributions are tax-free.
- Death benefits are income tax-free.
If you live to be 65, there is an 85 % likelihood that you will need long-term care assistance. In the past, if you had long term care insurance and didn’t need it, all of these premiums were wasted. This is no longer the case, as there are now products where an insured can decide to cancel his long-term care policy and get back almost all of the premiums paid. There are other products where the insured can choose to use his policy for long-term care needs, retirement needs or death benefit needs based on future events. There is a product where a very highly rated financial firm will guarantee a return on the cash value of your policy, but also allow it to grow up to 12%. Over a period of time these policies can build up a significant cash value; this money can be withdrawn income tax-free to pay for retirement. If you don’t need the money, the death benefit grows significantly. Death benefits are also income tax-free. One of my favorite planning tools is to use life insurance as a way to fund a DYNASTY TRUST, which is a trust that can be used for future generations and NEVER pay estate taxes. This is how the Kennedy family retained all of its wealth into future generations, but you don’t have to be a Kennedy to create such a vehicle if the funding is done by leveraging the power of life insurance.
Shortly, we will be rolling out an “Instant Estate” program for AIA members where a young AIA member can fund a trust with convertible term life insurance. We recently formed one where the financial contribution for a $2 million term policy for a 28-year-old was only $68/month. Over time this policy can be converted as the insured’s income rises funding a very substantial retirement account with a large death benefit and long term care protection.
To take advantage of our comprehensive life insurance review program, just contact me at:
Robert C. Smith, PLC, rsmith@chartwellcapital.net
Chartwell Capital Advisors
The Branch House
2501 Monument Avenue
Richmond Virginia 23220
804-357-5977
More than just a law firm. We provide legal and financial services to businesses and wealthy individuals. We are problem solvers and opportunity seekers. We deliver and manage a wide variety of professional services for our clients. Once we identify your needs, we offer state of the art financial products to allow our clients to build and retain wealth and reduce risks. We either provide or broker/manage: legal, accounting, financial and real estate advisory services through our “best in the industry” model that allows our clients to receive outstanding professional services at competitive and fair prices.