How to best plan the transfer of assets
to heirs after death
How not to lose everything to a
How not to outlive assets
Virtually all of the financial
solutions that will be recommended are issued by the
legal reserve life insurance industry. The reasons
for this are numerous. First and foremost is the
safety of the industry.
Funds placed with a company are backed by the full faith
and credit of the insurance company. Therefore the
rating of the company is important. (see: ambest.com)
Legal reserve refers to the strict financial
requirements that must be met by the insurance company
to protect the money paid in by all policy owners. Most
states, including California, have guaranty associations
that further protect individuals assets from any
Not since the
depression have there been any failures. Compare that to banks
or stocks or mutual funds with virtually thousands.
Amazingly one of the key reasons for the inconceivable record of
the life insurance industry, since the depression, has been a
great deal of government regulation.
It is not surprising that the industry is so regulated because
it has been granted so many
competitive advantages. Income tax deferral is an incredible
benefit when deciding where to place long term safe money.
Probate avoidance can be achieved with minimal planning and is
another industry benefit
Income tax free proceeds at death has always been a hallmark of
life insurance when there is a named beneficiary. Tax free
income is possible when following I.R.S. regulations using life
insurance Income tax deductible premiums are possible for long
term nursing care coverage
With these advantages it should not come as a shock that the
industry is so large and so safe.
It would, however, come as a shock if these advantages were not
made use of by people of all ages.