Life Insurance for Living

...Life Insurance for Living Part 2

Of course, this strategy might not be suitable for everyone. Access to cash values through borrowing, partial surrenders, or withdrawals can reduce the policy's cash value and death benefit, increase the chance that the policy will lapse, and possibly result in a tax liability. Consult your tax advisor regarding your personal situation. A permanent life insurance policy can help protect your family when your children are young and later be tapped to help pay for college or retirement. You might want to learn more about the role that life insurance can play during your lifetime.
The cost and availability of life insurance depend on such factors as age, health, and the type and amount of insurance purchased.3 Before implementing a strategy involving life insurance, it would be prudent to make sure that you are insurable by having the policy approved.
1) American Council of Life Insurers, 20062) Policy withdrawals are not subject to taxation up to the amount paid into the policy (the cost basis). If the policy is a Modified Endowment Contract, policy loans and/or withdrawals are taxable to the extent of gain and are subject to a 10 percent tax penalty. 3) As with most financial decisions, there are expenses associated with the purchase of life insurance. Policies commonly have mortality and expense charges. In addition, if a policy is surrendered prematurely, there may be surrender charges and income tax implications.

Joe Swanson, Financial Advisor Minnesota
• 11100 Wayzata Blvd, Suite 161
• Minnetonka, MN
• 55305
• Phone: (952) 277-4259 Toll Free: 800 277-7095
• Fax: (952) 277-4301
• www.joeswanson.com
• swanson.joe@principal.com