Without the estate tax, many rich and super-rich folks may think they may not need life insurance, but that thinking may be flawed.
Even if Donald Trump does eliminate the estate tax, there are reasons that the rich and the super-rich will want to purchase life insurance. Frank Seneco, president of Seneco & Associates and one of the leading authorities in the field of life insurance, shares some of the reasons that extremely wealthy people will want to continue with their life insurance.
Do the Rich & Super-Rich Still Need Life Insurance?
Paying for Corporate Benefits. Life insurance has specific tax advantages. It has been and will continue to be a highly effective way for corporations–including those owned by the extremely affluent–to pay for certain company benefits to owners and employees
Estate Equalization. When the rich and super-rich want to give their children equal amounts of illiquid assets, like businesses, life insurance is a viable and practical way to provide them financial “fairness.”
Obtaining Loans. For some of the ultra-wealthy, the insurance is one of the requirements in order to obtain a significantly-sized loan.
Replacing Assets Donated to Charity. Many incredibly wealthy entrepreneurs use life insurance that will benefit their loved ones to replace the monetary value of their gifts to charity.
Asset and Privacy Protection. The life policy is a legally sanctioned way to ensure that all of the money remains private and protected from frivolous lawsuits.
Life insurance is an important investment for everyone, from the most average of Joes to the most richest of Richards. To learn more about life insurance and what it can do for you, contact Donald Weiss Insurance Services. Our dedicated team will help you determine your coverage needs, helping you pick the right policy with the right term for your goals. Don’t be left with questions when buying this essential coverage; call us today!