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Beth A. Botti, CFP®, ChFC, CLU, CDFA™
Financial Consultant
California Insurance License #0G24537
612 Wheelers Farms Road, Milford, CT 06460
Phone: 203-877-6556 Ext. 169
Fax: 203-301-0736
Email: beth.botti@equitable.com
November/December 2019
Life Insurance with a Purpose
Whole life insurance* has become a multipurpose financial protection vehicle, offering a combination of benefits beyond basic life insurance protection when you choose certain options. Some policies include everything from optional long term care benefits and terminal illness benefits to the availability of cash withdrawals for just about any reason, including extra retirement income.
Some of these options may make sense; others won’t. In all cases, a life insurance policy cannot provide a full death benefit while also offering benefits for other reasons. Let’s take a look at a few situations to see how these options work.
Cash Withdrawals
Just because a whole life insurance policy allows policyowners to withdraw some cash value doesn’t mean you should do it. In many cases, subtracting cash value from a policy will automatically lower the death benefit.Taking a cash distribution may work for you if you are retired, have a paid-off mortgage and a decent amount of other assets. This may not work if you are in the prime of your earning years, have young children and a good amount of future financial goals yet to be financed. It also may not work if you intend to leave your life insurance as a financial legacy to loved ones or a favorite charity.
Long Term Care
Another optional benefit offered by some whole life insurance policies is the ability to use a portion of the policy’s death benefit for qualified long term care costs. This is good news for consumers who can’t afford standalone long term care insurance, whose premiums have increased of late. Again, even this well-intentioned option will affect the other reason you bought life insurance – to protect loved ones financially after you’re gone. Weigh your choices carefully.Terminal Illness
Another well-intentioned option many insurance companies offer is the opportunity to accelerate death benefits when the insured person has a terminal illness, subject to certain qualifications. Talk with an insurance professional to learn if these policies are right for you.* Applications for life insurance are subject to underwriting. No insurance coverage exists unless a policy is issued and the required premium to put it in force is paid.
GE-2572772 (06/19)(exp.06/21)
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Duly registered and licensed financial professionals offer securities through Equitable Advisors, LLC (NY, NY 212-314-4600), member FINRA,SIPC (Equitable Financial Advisors in MI & TN), offer investment advisory products and services through Equitable Advisors, LLC, an SEC-registered investment advisor, and offer annuity and insurance products through Equitable Network, LLC (Equitable Network Insurance Agency of Utah, LLC in UT; Equitable Network of Puerto Rico, Inc.). Equal Opportunity Employer - M/F/D/V. Equitable Advisors and its associates and affiliates do not provide tax, accounting, or legal advice or services. Representatives may transact business, which includes offering products and services and/or responding to inquiries, only in state(s) in which they are properly registered and/or licensed. Your connection to this website does not necessarily indicate that the sender is able to transact business in your state. The information in this website is not investment or securities advice and does not constitute an offer. For more information about Equitable Advisors, LLC you may visit https://equitable.com/crs to review the firm's Relationship Summary for Retail Investors and General Conflicts of Interest Disclosure.
GE-6572038.1 (4/24)(Exp. 4/26)
CFP®, and CERTIFIED FINANCIAL PLANNER™ are certification marks owned by the Certified Financial Planner Board of Standards, Inc. These marks are awarded to individuals who successfully complete the CFP Board's initial and ongoing certification requirements.
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