Life Insurance
30 million insured households in America have insufficient coverage for their needs.
Half of people overestimate the cost of term life insurance. Millennials, in particular, overestimate the cost by 213%!
Number of businesses that have a buy/sell agreement, the majority of which are NOT funded with life insurance.
Life insurance is tax-advantaged funds for delivery at a future time of need, purchased at a discount.
Life insurance can help protect clients from financial risks throughout their life: funds to continue the family’s lifestyle after the death of a breadwinner or caretaker; tax-efficient wealth transfer; tax-advantaged supplemental retirement income; Roth alternative for clients whose income may eliminate Roth planning; leveraging unneeded/unwanted Required Minimum Distributions and more!
For business, life insurance is a key planning tool to keep businesses thriving. It is a crucial part of transition planning, offers protection against the loss of a key person and can be an important part of a benefits package to retain and recruit employees.
Too often clients hesitate to obtain or upgrade life insurance coverage because they don’t truly understand their needs. Helping your clients navigate this process will help secure your client relationships while providing important family and asset protection.
OWR team helps you drive your insurance business through comprehensive, solution-focused analysis, simplifies the application process, and obtains the best offers for even the most complex underwriting cases.
CASE STUDY
The Client
Robert is a recently widowed 63 year old doctor with a large medical practice. He is planning on working for another 5 years. Robert’s net worth is currently $20,000,000. He reached out to his financial professional, Steve, to discuss his wealth plan and the best strategy for investing the proceeds from his deceased wife’s life insurance policy. Steve realized the importance of reviewing his clients existing insurance policies as part of this process.
The Conversation
Robert had purchased a $4,000,000 whole life policy 14 years before, while his kids were younger and his practice was growing. The policy had a $1,200,000 cash surrender value with a $350,000 gain. Robert was frustrated because he expected 10 premiums of $58,000, but as a result of a decreased dividend, he had been repeatedly advised to pay for a “few more years.” OWR partnered with Steve to present Robert a number of alternatives including a similar policy with no additional premiums.
The Solution
OWR helped Robert obtain a $5,100,000 death benefit guaranteed forever using a tax-free 1035 exchange of the $1.2M and 5-premiums of $58,000. Robert decided to pay premiums while working to increase his death benefit, with the certainty of no unexpected future costs. As a result, Robert decided to use a portion of the proceeds (and his lifetime exemption) from his wife’s policy to purchase an additional $5,000,000 policy for the benefit of his children.