On December 12th, I posted a blog Permanent life insurance for high net worth individuals and corporate business owners. This blog is based on A podcast I was a member of the committee. On the blog, I expanded the podcast discussion to review in detail what permanent insurance is and why you might want to use permanent insurance for estate planning or asset diversification purposes.
I mentioned in the post that we intend to do a follow-up podcast on some of the tough questions to ask when you’re considering getting into a permanent life insurance policy. That podcast is now available Here.
Both podcasts are moderated by Simon Kay of IPS Insurance (email: [email protected]). Simon specializes in life insurance for HNW individuals and corporate business owners and is a pioneer in private underwriting. Jay Hershfeld is my fellow panelist on both podcasts. Jay is a highly respected tax and estate specialist with an insurance expertise and is currently a director at Scotia Wealth Management.
Some of the tougher questions we cover in this podcast include:
- Are there any income tax provisions that make tax-free capital dividends 100% tax-free to the final estate?
- If a permanent policy has a Cash Surrender Value (“CSV”), are there situations where the value of the CSV shares can increase at death?
- Does a change in dividend level affect future premium or policy values?
- How might your children’s plans for your holdings affect your tax plan after the death of the last surviving parent?
- What are the risks and benefits of leveraged insurance?
- If you are married younger, should your policy be a last-to-die policy?
If you are considering purchasing a permanent life insurance policy or currently reviewing a plan, I recommend this podcast as essential listening. Personally, I can’t remember reading an article or listening to a podcast that discusses these difficult questions in such detail.
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