Insurance Services

Life Insurance falls into two overall categories.

The first is Term Insurance, which offers lower premiums and protection for a limited time period. The second is Permanent Insurance, which requires higher premiums and offers cash values and death benefit protection that can continue throughout the insured’s lifetime. Guarantees, coverage periods, features and riders vary widely among all policies. The variation is greatest among permanent policies.

The cash values of General Account (non-variable) policies are associated with an underlying fixed income portfolio of assets selected by the insurance company (generally bonds and mortgages). The cash values of Separate Account (or variable) policies are allocated by the policy-owner among sub-accounts, which can focus on equity or fixed income investments. Many factors, such as expenses and mortality experience, substantially impact the performance of all permanent life insurance policies.

Among permanent products, Universal Life (UL) provides flexible premiums with relatively minimal guarantees. In some cases, UL policies offer supplemental guarantees, which can guarantee death benefit protection even after cash values expire. Adjustable Life policies offer varying guarantees based on the premium level. Whole Life policies (WL) provide lifetime guarantees for higher premiums. Whole Life premiums can be reduced by blending the Whole Life policy with a Term Rider or by using a modified premium structure (blended premiums). In either approach, some level of guarantee is sacrificed to obtain lower premiums.

Due to this wide variance in structure, options, riders, guarantees and assumptions, a premium or illustration comparison alone could be an inadequate and potentially misleading basis for comparison of life insurance policies.

Below are just a few of the insurance-related problems we’ve been able to solve for clients. Click the silver bar for each problem to learn more about how we can solve them. 

 

Determining Adequate Coverage Amount

High net worth individuals and families often struggle to determine the right amount of coverage needed to protect their family’s financial future. We can perform a comprehensive needs analysis, ensuring the term life insurance coverage adequately meets your dependents’ needs in case of untimely death.

Balancing Cost and Coverage Duration

Finding a balance between affordable premiums and the desired coverage duration can be challenging. We can can help you choose a term length that aligns with your financial obligations and goals while ensuring the premiums remain manageable within your overall budget.

 

 

Integrating with Long-Term Financial Goals

Ensuring that term life insurance fits seamlessly into long-term financial plans and goals can be complex. We can provide guidance on how term life insurance complements other financial strategies, such as retirement planning and estate planning, to create a cohesive financial plan.

Conversion Options and Flexibility

Understanding the conversion options and flexibility of term life insurance policies can be confusing. We can explain these features and advise on when and how to convert term policies to permanent insurance, ensuring that you maintain coverage as your needs evolve.

Coverage Gaps and Renewal Concerns

Prospective clients often worry about coverage gaps or the high cost of renewing term insurance as they age. We can review existing policies, recommend strategies to avoid coverage lapses, and help explore alternatives, such as laddering policies, to maintain adequate protection over time.

Estate Tax Mitigation

High net worth individuals and families often face significant estate taxes that can erode the value of their estate. We can design life insurance strategies, such as using an Irrevocable Life Insurance Trust (ILIT), to provide liquidity for estate taxes and preserve the estate’s value for your heirs.

Complex Policy Structures and Options

Navigating the variety of life insurance products and structures can be overwhelming. We can simplify the decision-making process by providing tailored advice on the most suitable policies, whether it’s term, whole, or universal life insurance, ensuring your needs and goals are met.

Ensuring Adequate Coverage

Determining the appropriate amount of life insurance coverage to protect your family’s financial future can be challenging. We can perform a comprehensive needs analysis to calculate the exact amount of coverage required, ensuring financial security for your dependents.

Integrating Life Insurance with Overall Financial Plan

High net worth individuals and families need to ensure their life insurance policies align with their broader financial goals and strategies. We can integrate life insurance into the overall financial plan, coordinating it with other investment, retirement, and estate planning strategies for optimal outcomes.

Premium Management and Cost Efficiency

Managing the cost of life insurance premiums and ensuring cost efficiency over time can be a concern. We can review and compare policies, recommend premium financing options, and periodically reassess the coverage to ensure it remains cost-effective and suitable for your evolving needs.

Interested in working with us?

If you’re interested in working with us, you may call and text us at (781) 237-0123, or scroll down a little and schedule an introductory appointment with a financial advisor by clicking on a date that works for you on the calendar.

As an estate planner, from time to time, I recommend insurance as a solution to solve a client’s problem. Being able to turn to John Williams for the product, which is in the client’s best interest, has allowed me to sleep nights.  John has never disappointed me or my clients with an insurance product recommendation.

Edward Tarlow

President, Tarlow, Breed, Hart & Rodgers, P.C., a Boston Law firm

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62 Walnut Street
Wellesley, MA 02481
Phone: 781.237.0123
Fax: 781.237.1696
E-mail: info@capformgroup.com

Capital Formation Group, Inc.