Many people get life insurance for the first time as part of their employee benefits. Life insurance is a program that uses your premiums to provide a lump sum to your beneficiaries after you pass away. Although it may not be pleasant to think about your death, it may be a comfort to know your beneficiaries will receive help for your funeral expenses and funds to help them through the time after your death. Life events like marriage and having children often cause people to realize that although they may have life insurance through their employer, they may want additional life insurance.
When you want to buy life insurance, you may have questions. If you live in the New York, NY, area and are looking for a life insurance agent in Manhattan, our team at Margolis and Associates has provided life insurance options for clients like you for over 50 years. We can answer all your life insurance questions and provide information about considerations you may not know.
The Role of Life Insurance in Wealth Transfer Planning
When you talk with one of our agents, they can help you see your life insurance options from another point of view. Instead of seeing life insurance payouts as only a payment to cover death expenses, you can learn how the right insurance planning can be utilized as wealth transfer planning. Life insurance can be a vital component in estate planning, offering protection to your current assets while allowing your wealth to grow in anticipation of transferring it upon your death.
Depending on your age, a term life insurance policy may be a good solution. Term policies cover a specific period, such as 10, 20, or 30 years. If you pass away during the term, your insurance company will pay a death benefit to your beneficiaries. Your benefit won’t be paid if you don’t pass away during that term. Term policies allow for a high payout for more affordable premiums so that they can be an attractive option as part of your wealth transfer.
Understanding the Tax Benefits of Life Insurance for Estate Planning
For example, when you are beginning your career, your thoughts may not naturally consider estate planning. However, your life insurance can help provide tax benefits through your estate plan. You may be pleased to learn your beneficiaries can use your life insurance payout proceeds to pay estate taxes. Federal and state estate taxes will apply to the gross amount of your estate, and your beneficiary must pay the tax within nine months of your death.
Careful estate planning that includes your life insurance policy may spare your beneficiaries from paying taxes on the death benefits. Proper estate planning means that when your beneficiaries receive your insurance payout, they may not have to pay taxes on the amount. This will allow them to use the full death benefit amount for needed expenses.
Margolis & Associates’ Expertise in Life Insurance Wealth Transfer Strategies
As you accumulate wealth and other assets during your career, you will eventually want as many assets as possible to be transferred to your preferred beneficiaries upon death. A significant portion of your estate will be recovered to state and federal taxes with proper estate planning. With our years of experience in the insurance industry, Margolis and Associates’ agents know how to structure your estate plans and insurance policies.
Our experience in life insurance has shown there is no “one-size-fits-all” for life insurance policies. Clients of similar ages, marital statuses, and jobs can have different life insurance needs. We will listen to your estate planning goals and talk about the best ways to accomplish those goals through life insurance and careful planning.
Call Us Today for Your Appointment
At Margolis and Associates, we provide insurance solutions for clients at all stages of their lives and can provide you with financial guidance on ensuring your assets will benefit your designated family members. You may be interested to know that we are also experts in offering employee life insurance for NYC companies. If you are a company owner or Human Resources manager, talk with one of our agents about how our corporate insurance plans can benefit you and your employees. Call us for an appointment today, and let’s talk about your insurance options.