Tom Meaglia photo

Tom Meaglia, ChFC®, AEP®,

CLU®, CRPC®, MSFS

Chartered Financial Consultant

Investment Advisor Representative

Chartered Retirement Planning Counselor

CA Insurance Lic. #0567507

 

Meaglia Financial Consulting

2105 Foothill Blvd., #B140, La Verne, CA 91750

 

Toll Free: 800-386-3700

Bus:         909-593-6105

Cell:         818-681-8600

Fax:         909-593-6120

 

Email: tom@meagliafinancialconsulting.com

Website: www.meagliafinancialconsulting.com

November/December 2019

Life Insurance with a Purpose

Life Insurance with a Purpose

Whole life insurance* has become a multipurpose financial protection vehicle, offering a combination of benefits beyond basic life insurance protection when you choose certain options. Some policies include everything from optional long term care benefits and terminal illness benefits to the availability of cash withdrawals for just about any reason, including extra retirement income.


Some of these options may make sense; others won’t. In all cases, a life insurance policy cannot provide a full death benefit while also offering benefits for other reasons. Let’s take a look at a few situations to see how these options work.


Cash Withdrawals
Just because a whole life insurance policy allows policyowners to withdraw some cash value doesn’t mean you should do it. In many cases, subtracting cash value from a policy will automatically lower the death benefit.


Taking a cash distribution may work for you if you are retired, have a paid-off mortgage and a decent amount of other assets. This may not work if you are in the prime of your earning years, have young children and a good amount of future financial goals yet to be financed. It also may not work if you intend to leave your life insurance as a financial legacy to loved ones or a favorite charity.


Long Term Care
Another optional benefit offered by some whole life insurance policies is the ability to use a portion of the policy’s death benefit for qualified long term care costs. This is good news for consumers who can’t afford standalone long term care insurance, whose premiums have increased of late. Again, even this well-intentioned option will affect the other reason you bought life insurance – to protect loved ones financially after you’re gone. Weigh your choices carefully.


Terminal Illness
Another well-intentioned option many insurance companies offer is the opportunity to accelerate death benefits when the insured person has a terminal illness, subject to certain qualifications. Talk with an insurance professional to learn if these policies are right for you.


* Applications for life insurance are subject to underwriting. No insurance coverage exists unless a policy is issued and the required premium to put it in force is paid.


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Investment advisory services are offered through Fusion Capital Management, an SEC Registered Investment Advisor. The firm only transacts business in states where it is properly registered, or is excluded or exempted from registration requirements. SEC registration is not an endorsement of the firm by the commission and does not mean that the advisor has attained a specific level of skill or ability. All investment strategies have the potential for profit or loss.
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