Life insurance product’s most basic role of is to safeguard families/heirs with death benefit. Almost 81% of adults in the U.S. with life insurance coverage and personal financial advisor feel that the key reason for possessing these policies was to take care for their heirs or family. There were just about 17% who considered wealth transfer as the chief reason for their life insurance policy. 15% felt that it had a good potential for accumulation of cash, which is a primary feature of several permanent life insurance products.
It can be seen through such statistics that archetypal life insurance policyholders may not be sentient about the several other benefits of life insurance other that heir and family protection. People rely on annuities or IRAs for wealth transfer, which is particularly planned for income after retirement and asset accumulation, but not wealth transfer, particularly from the point of view of tax. Life insurance policies provide a possibility for tax beneficial cash accumulation. This can be used for several reasons such as an additional retirement income, health care or a tax-efficient tool for the heirs.
As per the conducted survey, 83% or four out of five adults in the US with life insurance and financial advisor and life insurance cited that they will like life insurance policies which had additional features which are not available in the current life insurance policy. There was a varied degree of interest in detailed features. Around 49% or half of such U.S. adults have also discussed with their financial advisor about including life insurance policy to their personal financial plan. About 30% of such individuals felt they would like a feature which will allow them to get a life insurance payout as a form of income in case of being diagnosed with a life-threatening illness. About 28% wanted long-term care requirement coverage and 18% would like a waiver in premium payment in case of a disability.
According to Saybrus Partners, national sales manager, Kevin Kimbrough life insurance is the base for a well formed financial plan, which not just protects but also offers tax benefits and a possibility for wealth transfer and cash accumulation. It is true that life insurance is fairly complex and a number of financial advisors are hesitant to initiate it into discussions relating to financial planning. There are some financial professionals who with the help of other life insurance specialists are advising their patrons on the efficient and effective used of having life insurance policy in their portfolio.
