Wealth protection and estate planning for wealthy business owners almost always involves a need for life insurance. One of the main issues life insurance addresses is providing liquidity to pay estate taxes. There are many stories where children were forced to sell businesses and important personal items to simply pay the estate tax. Estate tax limits were $11.1 Million in 2018. In previous years the limit was much lower. Life insurance designed to provide tax liquidity can help ensure your wishes for legacy remain intact.
Additionally, life insurance offers tax-deferred savings and the ability to both borrow from cash value accumulation and/or receive supplemental retirement income.
For large insurance needs that result in excessive premiums, premium financing may be a suitable alternative.