Quotes on Car Insurance, Auto Insurance, Travel Insurance, Home Insurance and Life Insurance

Use Life Insurance to Increase and Protect Your Income

Milford, MA (PRWEB) September 22, 2007 -- Life insurance should be called "death insurance" since it pays the beneficiaries when the policyholder dies.

"However, life insurance can be used to increase and protect your retirement income -- while you are living," says, Paul J. Mauro, CLU, ChFC, founder of Legacy Financial Advisors in Milford, MA (www.lfsadvisors.com).

"For a young family with a big mortgage and children's education expenses looming, term life insurance is the least expensive and simplest way to protect ones family if the breadwinner dies. Older Americans -- age 50-plus -- who are planning retirement or are retired can use life insurance to increase income while they are still alive," explains Mauro, a 30-year wealth management veteran.

Here are Paul J. Mauro's top 10 ways life insurance can both increase income and protect retirement security:

1. Leverage -- borrowing to invest in ones own business or opportunities to produce additional income is okay at any age -- especially if the proceeds from the loan are covered by life insurance to protect family security.

2. Tax-free income is the holy grail of the affluent. For those who have maxed out their traditional pension plan contributions, a life insurance policy can increase tax-deferred savings -- as long as it meets IRS qualifications.

3. Long term care -- Do not pay for both life- and long-term care insurance. Cut the cost in half by using modern life insurance policies that pay out whether one dies or enters a nursing home.

4. Traditional pension plan -- Those with a traditional or defined-benefit pension plan have to make a choice at retirement -- take full-benefits for their lifetime or cut benefits so that payments will continue to their spouse after they die. "A less costly alternative is to take the full pension benefits and buy life insurance to guarantee that his or her spouse has enough income after the retiree dies," says Mauro.

5. 401(k) plans and personal savings have become a primary source of retirement income. Most studies show that to guarantee lifetime income, only 4% per-year can be withdrawn from the fund. However, life insurance products such as immediate annuities can both increase and guarantee lifetime payouts according to Yale economist Roger Ibbotson, Ph.D. in the August 2006 issue of Investment Advisor.

6. Those who bought "Whole Life" or "Universal Life" insurance policies a decade ago, may borrow from the cash build-up at favorable rates. "Often, there is no requirement to pay back the loan until death. Life insurance loans are tax-free, while canceling the policy and taking out cash can result in a tax on the proceeds." according to Mauro.

7. Business-owners -- IRS tax rules allow business owners to save substantially more money in a Defined Benefit pension plan on a tax-deferred basis if life insurance is included in the plan. The tax-deferred amount can be can be substantial --- some $50,000 per year.

8. Annuities -- those who have a life annuity may be tempted to take the maximum payout from the account but these payments stop at death. Insurance products called "reversionary annuities" provide income for life plus a death benefit. Annuities can be purchased with funds from IRAs and other retirement savings.

9. "Couples of modest means who do without so that they can leave a home or money to their children need to rethink this strategy. Instead of scrimping, purchase a joint, or second-to-die, life insurance policy. The insurance proceeds provide for a generous inheritance and leave the couple with more money to spend on themselves and no worries over spending their kids inheritance"

10. Reverse mortgages get a lot of press, but homeowners fear the fees and interest build up. "Buy a life insurance policy to cover the amount of the reverse mortgage plus accumulated interest for several years. This gives the heirs the option of paying off the loan to keep the home, or simply keeping the proceeds from the life insurance policy and letting the bank dispose of the home."

"Everyone's situation is different. Consumers should seek advice from their own qualified financial adviser before adopting any of these insurance strategies," concludes Mauro. Those qualified to advise on these matters include life insurance professionals who hold either the CLU designation or the LUTCF Designation. These individuals have completed eight postgraduate level courses on sophisticated uses of life insurance.

This information is not a suggestion or an offer to sell or buy any security. Life insurance companies vary, and benefits are based upon the claims-paying ability of the insurance carrier. Legacy Financial Advisors does not give tax or legal advice. Meet with your own CPA or lawyer.

The examples discussed above are hypothetical and for illustration purposes only. Tax laws are subject to change and individual situations vary.

Securities and advisory services offered through SII Investments, Inc., member NASD SIPC and a Registered Investment Advisor. Legacy Financial Advisors and SII Investments, Inc. are separate and unrelated companies

###

MORE ARTICLES:

Affordable Health Dental Insurance - Low Cost Insurance For Dental Braces
Dental braces are now considered not only as a way of making a person looks good by reshaping the outward growth of his or her teeth to become vertically inclined inside his or her mouth to preclude an ugly look that might otherwise destroy his or her beautiful face Indeed, a beautiful face can be severely destroyed by a protruding mouth due to the outward growth of teeth inside the mouth

Individual Dental Insurance Plan - Supplemental Dental Insurance For Military Men
If you are in the military, your insurance will cover dental care This coverage will be assured during the time when you are still in active service

Family Dental Plan Insurance - Avoiding Delays in Insurance Claim
Considering the many safeguards that insurance companies are now putting in place to preclude errors in their settling of claims, you would find it hard to be paid your insurance claims if your claims are not put in good order You have to consider the risk the insurance company will be facing if they will just pay without fully verifying your medical claims especially now when fraudulent claims are on the rise

Your Future Includes Health Insurance, Says Florida Health Insurance Web
"The Democratic Party, if elected on November 4, 2008 will deliver health insurance to every man, woman, and child," that according to Morgan Moran of Florida Health Insurance (http://www.floridahealthinsuranceweb.com) Web, a health insurance web site. Moran spoke after the Democratic Convention in Denver saying, "One thing is for certain, electing Obama means an affordable health insurance plan for everyone.

Kwik-Fit Insurance First UK Car Insurance Company Offer Motor Insurance e-certificates
Online Car Insurer agrees deal with solutions company SSP to deliver fast online certificates for web users.

Combined Insurance: Consider Supplemental Accident Insurance and Disability Insurance During Safety Awareness Month
Safety Awareness Month an Ideal Time to Take Stock of Supplemental Insurance Protection

A Life Insurance Comparison: Whole Life Insurance Versus Term Life Insurance
What type of life insurance might fulfill your assurance needs This article is a life insurance comparison about whole life insurance versus term life insurance

Affordable Health Insurance Unemployed - Health Insurance Options for the Unemployed
Being in between jobs and unemployed can bring in many financial problems to your doorstep You might need to depend on someone else to help you with covering your day to day expenses

2007 Third Quarter Auto Insurance Pricing Report from Leading Auto Insurance Agency, Insurance.com
Insurance.com, the largest online auto insurance agency in the United States, reports that car insurance rates are continuing to decrease depending on geographical location.

Florida Public Insurance Adjusters And Property Damage Insurance Claims
Florida Public Insurance Adjusters are growing in popularity throughout Florida. Whether it is hurricane, fire, flood or catastrophe damage, more and more home and business owners are finding it necessary to acquire the assistant of a Public Adjuster because of underpaid property damage insurance claims.

Take Stock of Life Insurance Coverage During Life Insurance Awareness Month
Leading Supplemental Insurance Provider Stresses Importance of Assessing Life Insurance Needs

Florida Health Insurance Web Blasts New AMA's Health Insurance Proposal
"Do Doctor's or Drug companies get paid to keep you healthy? Or do they get paid to keep you sick?" Florida Health Insurance Web wants to know. With that in mind, Morgan Moran took a look at the new AMA health insurance proposal, hoping to find some shred of hope for Florida's residents, but Moran said, "It looks like more of the same from Washington" and "he'd like to look into the AMA's campaign contributions."

Affordable Health Dental Insurance - Guide to Finding Federal Dental Insurance
In looking for a government sponsored dental insurance, you have to consider two basic facts One, that most federal dental insurance plan is for those employed by the federal governments only

What Is The Difference Between One Way Insurance And Full Coverage Insurance
When traveling, especially when going abroad, it is often fundamental to have an insurance policy for your trip. When going to foreign countries that you often know little or nothing about, it is very important to do all you can to insure your trip goes as planned, with as few setbacks as possible. Unfortunately, unplanned events that are completely out of our control often come up, this is one reason why insurance policies are a necessary part of traveling. Whenever preparing for a trip, be sure to consult your travel agent about insurance plans and fees.