Tom’s good friend and life insurance expert Kim Butler shared her thoughts on this topic on an episode of the WealthAbility® for CPAs podcast.
There are several components to consider as part of your strategy work with clients:
Different types of insurance have different benefits. Term insurance is an expense that protects against a specific risk. Whole life insurance protects against risk but also comes with an asset. Other types include universal and variable life.
Help your clients by making sure they have an inforce illustration for their policies, which estimates how the cash value will change over time.
Having a whole life policy asset creates more borrowing options. Your clients have more control with a loan that uses a whole life policy as collateral than they do taking money out of their 401(k).
Before your clients use any type of loan, help them make sure they are comparing the costs and tax implications of all their options. You can provide great value to clients by making complex financial decisions more clear.
Watch the full episode for more details.
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