Depending on your needs, a hybrid life insurance policy may be a great option.
Financial and estate planning encompasses so much.
Providing for your loved ones.
According to The Digital Journal article titled “New Hybrid Wealth Transfer Concept Gaining Consumer Acceptance,” a hybrid life insurance policy could be beneficial to use in addition to investment accounts.
A hybrid policy means you do not have to be dead to use the death benefit.
The insurance company may even allow you to use the death benefit to pay for chronic illnesses or long-term care.
The death benefit will be calculated by the one-time deposit amount as well as factors such as the health, age and gender of the policy holder.
As a life insurance policy the death benefit would go directly to beneficiaries, avoiding probate.
If you want access to this money, hybrid policies may allow withdrawals of the cash value of the policy, and all are required to guarantee a 100 percent return of the premium.
How do they grow?
Some grow on fixed interest rates.
Others use an indexed interest rate.
Why might this be important?
You could receive a greater return than merely putting the money in a bank, CD or annuity.
Are you worried you the qualification process is not worth it?
No tests are typically required.
Usually it will take answering a few questions and a phone call.
Although I briefly discussed the benefits of considering a hybrid policy, these policies are not perfect and are not for everyone.
Be sure to meet with an experienced estate planning attorney to discuss your goals and your unique circumstances.
Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.
For more information about estate planning in Overland Park, KS (and throughout the rest of Kansas and Missouri), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.
Reference: Digital Journal (November 22, 2016) “New Hybrid Wealth Transfer Concept Gaining Consumer Acceptance”