Life Insurance

Life insurance pays a tax-free cash benefit to your beneficiaries if you pass away, which can be used to pay debts and expenses, provide an income for your family, and leave a legacy to family members or a charity. In addition, some insurance policies can also build savings you can access while still living.

The need for life insurance may range depending on your current situation, and will always evolve over time.

  • Cover off loans/mortgages
  • Financial protection for your family
  • Buy/sell funding agreement with a partner
  • Mandatory to secure loans for practice purchase
  • Accumulating tax deferred cash to offset retirement needs

Accumulating Wealth within a Life Insurance Policy

A common practice for owners of medical or dental corporations is to have a corporately owned life insurance policy. If structured correctly, a permanent life insurance policy can be used to accumulate wealth tax deferred inside the body of the policy, and can eventually be drawn on to offset retirement needs. Every insurer has their own name for this strategy, but it is commonly known as a Corporate Insurance Retirement Plan.

The following article from Dental Practice Management Magazine profiles the type of candidate that might find this strategy beneficial: Streamline Your Retirement Savings with a Corporate IRP (see page 36 of the Finance section).

Everyone’s needs are unique when it comes to life insurance. Contact me to review you current coverage or to discuss options and create a plan.