Your Right Way PathTM may include recommendations for life, disability, or critical illness insurance. Each of those recommendations will include strategies to increase the return on your premium dollars.
There are a number of way to increase your returns on your premium, such as:
- Lowering the cost of your insurance
- Increasing the benefits you receive
- Receiving your benefits earlier
Lowering insurance cost
The premium that you pay for your insurance is set during the underwriting process and is contractually guaranteed for the life of the policy. There is not much we can do about the actual premium, so we must look for other ways to reach our objective. Normally, other than business overhead insurance and collaterally assigned insurance, premiums are not tax deductible, so deducting the premium is not usually an option. There are, however, structures that can be put in place that will create tax benefits that can offset the cost of the insurance during your lifetime, thereby increasing the return you realize on the premium paid.
It is possible to increase the benefits you receive by properly structuring the ownership and the use of the funds at the time of claim. By reducing tax, you effectively increase the economic benefit of the insurance, which can, in turn, increase the return on your premium dollars.
By combining the reduction in cost through tax planning and increasing the benefits received through the same, you can dramatically increase your return on insurance dollars invested. Call us to find out how.
Receiving benefits earlier
We don’t recommend this option. It is our preference that you live a long and healthy life and the return that you earn related to extended health and life is as low as possible. This is the one instance where lower is better!