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Robert A. Imparato, Jr CFP®
CERTIFIED FINANCIAL PLANNER™ professional
Craig A. Hyldahl CFP®
CERTIFIED FINANCIAL PLANNER™ professional
R.I.C.H. Planning Group, LLC
105 Fieldcrest Avenue, Suite #507
Edison, NJ 08837
Robert: 732-326-5240
Craig: 732-326-5240
Fax: 732-326-5331
Robert: robert@richplanninggroup.com
Craig: craig@richplanninggroup.com
Website: www.richplanninggroup.com
November/December 2019
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.
GE-2572772 (06/19)(exp.06/21)
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Securities offered through Equitable Advisors, LLC (NY,NY (212) 314-4600), member FINRA,SIPC (Equitable Financial Advisors in MI & TN). Investment advisory products and services offered through Equitable Advisors, LLC, an SEC-registered investment advisor. Annuity and insurance products offered through Equitable Network, LLC, which conducts business in California as Equitable Network Insurance Agency of California, LLC; in Utah as Equitable Network Insurance Agency of Utah, LLC; and in PR as Equitable Network of Puerto Rico, Inc. Equitable Advisors and Equitable Network are affiliated companies and do not provide tax or legal advice.
R.I.C.H. Planning Group, LLC is not owned or operated by Equitable Advisors or Equitable Network. Equitable Advisors and Equitable Network are brand names for Equitable Advisors, LLC and Equitable Network, LLC, respectively.
GE-4833845.1 (7/22)(Exp. 7/24)
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