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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

March/April 2022

Life Insurance Can Serve Many Purposes

Outdoor Portrait Of Multi-Generation Family In Garden At Home Against Flaring Sun

You may think of a life insurance policy* only as financial protection for your family if something were to happen to you or your spouse. But life insurance can offer more benefits that you may not have considered.


Supplement Retirement Income
If you no longer need your permanent life insurance policy’s death benefit to provide income for your family, you may be able to make withdrawals** of the cash value to add to your income in retirement. Your insurer can go over the withdrawal options. Keep in mind that any cash value growth beyond your premium payments will be taxed as ordinary income, so plan withdrawals to minimize the tax hit.


Take Out a Loan
You can access the policy’s cash value through a loan.** You’ll pay interest, but not taxes, on the loan amount. The death benefit will be used to repay any unpaid loan balance.


Transfer Wealth to Heirs
Consider using life insurance to benefit your children, grandchildren, or other heirs. The beneficiary(ies) of your life insurance policy generally will receive the proceeds income-tax free. Life insurance can also be used to equalize an inheritance when only some siblings will receive an asset, such as a home or business.


Put it in a Trust

An irrevocable life insurance trust (ILIT) is an option to consider if the policy’s death benefit could cause your estate’s value to exceed the federal estate tax exemption amount of $12.06 million for 2022 (indexed for inflation). Remember, once established, this trust is irrevocable.

* Applications for life insurance are subject to underwriting. No insurance coverage exists unless a policy is issued and the required premium is paid. Accessing cash values may result in surrender fees and charges and may require additional premium payments to maintain coverage and will reduce the death benefit and policy values. Guarantees are based on the claims-paying ability of the issuer.


** If tax-free loans are taken and the policy lapses, a taxable event may occur. Loans and withdrawals from life insurance policies that are classified as modified endowment contracts may be subject to tax at the time that the loan or withdrawal is taken, and if taken prior to age 59½, a 10 percent federal tax penalty may apply. Withdrawals and loans reduce the death benefit and cash surrender value.


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Thomas Meaglia is an Investment Adviser Representative of Coppell Advisory Solutions LLC, dba, Fusion Capital Management, a registered investment adviser that only conducts business in jurisdictions where it is properly registered, or is excluded or exempted from registration requirements. Registration as an investment adviser is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. The firm is not engaged in the practice of law or accounting.
Insurance and annuity products are not sold through Fusion Capital Management. Fusion does not endorse any annuity or insurance product, nor does it guarantee any insurance or annuity performance. Annuity and life insurance guarantees are subject to the claims-paying ability of the issuing insurance company. If you withdraw money from or surrender your contract within a certain time after investing, the insurance company may assess a surrender charge. Withdrawals may be subject to tax penalties and income taxes. Persons selling annuities and other insurance products receive compensation for these transactions. These commissions are separate and distinct from Fusion's investment advisory fees.
Meaglia Financial Consulting and LTM Marketing Specialists LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative.

The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.