Life insurance protects families and businesses when a loved one passes away. M Financial Group Member Firms are comprised of some of the most successful and experienced professionals in the business. The collective buying power of M Financial allows Member Firms to utilize more favorable pricing experience than many off-the-shelf products and to garner special service considerations.
Life insurance has many unique characteristics that may make it an appropriate solution for a variety of uses in addition to the death benefit protection. Some of these characteristics include:
- Policy cash values accumulate on a tax-deferred basis.
- Policy death benefits are received income tax-free.
- Policy cash values, in many cases, may be accessed on a tax advantaged basis, therefore, can be used as a supplemental retirement plan not subject to the restrictions of qualified plans. Loans and partial withdrawals will decrease the death benefit and cash value and may be subject to policy limitations and income tax. Product guarantees including the death benefit are subject to the claims paying ability of the issuing insurance company.
- Can allow families to spend down their retirement plans knowing that their legacy to loved ones is taken care of.
- May provide tax-favored income for children’s education.
Often mistakenly viewed as a price only decision, the long-term nature of life insurance necessitates careful consideration in the selection of the insurance carrier, the product type, and the agent or agency and their interaction with heirs. Some of the questions to consider in purchase include:
- Does the agent have a business succession plan that provides for continued service after the retirement or death of the original agent?
- Does the agent have sufficient experience to meet your needs adequately?
- Does the agent have any influence with the carrier selected?
- Is the insurance carrier financially sound?
- Does the carrier have a history of equitable treatment of existing policyholders?
- Will the service levels provided by the carrier satisfy your requirements?
- Will the product be able to adapt to changes in your personal and financial goals or situation?
- Are the pricing assumptions of the product economically sound?
- If a term purchase, what products are available if conversion occurs? Are these products comparable to the current marketplace?