Tom Meaglia photo

Tom Meaglia, ChFC®, AEP®,

CLU®, CRPC®, MSFS

Chartered Financial Consultant

Investment Advisor Representative

Chartered Retirement Planning Counselor

CA Insurance Lic. #0567507

 

Meaglia Financial Consulting

2105 Foothill Blvd., #B140, La Verne, CA 91750

 

Toll Free: 800-386-3700

Bus:         909-593-6105

Cell:         818-681-8600

Fax:         909-593-6120

 

Email: tom@meagliafinancialconsulting.com

Website: www.meagliafinancialconsulting.com

July/August 2023

Increase and Protect Wealth With Life Insurance

Happy elderly  couple  dancing  on  tropical beach

In its most basic form, life insurance* is pure financial protection. Most people buy life insurance to provide the financial means to pay final expenses, cover outstanding debts and leave family with the financial ability to carry on.


For high-net-worth indviduals, however, life insurance can help to meet a variety of financial challenges from helping to protect and even increase intergenerational wealth to financially protecting a closely held business against a variety of risks, life insurance can help meet a variety of financial challenges.


Multi-Purpose Vehicle
For example, life insurance can simply be a means to leave a cost-effective financial legacy behind for a favored charity without depleting assets earmarked to family beneficiaries. Affluent estates often use it to help offset estate taxes. While life insurance proceeds are generally income tax free, they are considered part of an estate for estate tax purposes unless coupled with an irrevocable life insurance trust (ILIT).


Life insurance is also one way owners of closely held businesses fund a buy-sell agreement or protect against a key employee's loss. Both strategies, when paired with a properly structured arrangement, use life insurance’s death benefit to offset resulting financial losses.


When one child inherits a family business and another isn’t involved in it, life insurance can also be used to equalize an estate. Permanent life insurance’s cash value can also supplement retirement income or increase the policy’s death benefit.


There are a handful of varied life insurance types, each one offering different advantages and disadvantages. Additionally, you need to be wary of overfunding any cash value policy that creates a modified endowment contract, which would result in losing many of the tax benefits. So, it is important to seek the help of a financial professional to ensure you use the right type of insurance and structure with any life insurance policy.


*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. Accessing cash values may result in surrender fees and charges and may require additional premium payments to maintain coverage and will reduce the death benefit and policy values and may have tax consequences. Guarantees are based on the claims-paying ability of the issuer.


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Thomas Meaglia is an Investment Adviser Representative of Coppell Advisory Solutions LLC, dba, Fusion Capital Management, a registered investment adviser that only conducts business in jurisdictions where it is properly registered, or is excluded or exempted from registration requirements. Registration as an investment adviser is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. The firm is not engaged in the practice of law or accounting.
Insurance and annuity products are not sold through Fusion Capital Management. Fusion does not endorse any annuity or insurance product, nor does it guarantee any insurance or annuity performance. Annuity and life insurance guarantees are subject to the claims-paying ability of the issuing insurance company. If you withdraw money from or surrender your contract within a certain time after investing, the insurance company may assess a surrender charge. Withdrawals may be subject to tax penalties and income taxes. Persons selling annuities and other insurance products receive compensation for these transactions. These commissions are separate and distinct from Fusion's investment advisory fees.
Meaglia Financial Consulting and LTM Marketing Specialists LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative.

The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.