Insurance As An Asset

There are many different types of insurance, all for different needs and a specific length of time in ones life.

The licensed Insurance Representatives at Middle Retirement are here to help you distinguish the differences.

Why Insurance Should Be Part Of Your Portfolio

1. Returns similar to Fixed Income

2. More tax efficient than bonds

3. Guaranteed cash values

4. Low correlation to Equities

5. Enhances Estate Values

6. Increases Net Worth

7. Insurance for Life

8. Use Corporate dollars vs. Personal dollars

Term Insurance

• Provides coverage for a specific period of time for a specific need

• Buy/Sell agreements, Debts, Income Replacement, Children’s Education, etc.

• Premiums remain the same for the entire duration of the term, but will increase in later stages of life

• Relatively inexpensive…you are basically renting insurance

• Often used during working years to provide funds the business owner dies, cover the cost of a debt such as a mortgage or a loan, or until a major life change (kids complete college)

Permanent Life Insurance

• Provides guaranteed coverage for life

• Many forms including Whole, Participation and Universal Life

• Can provide both insurance protection and a tax-deferred investment component (tax sheltered growth)

• Includes a cash value that accumulates over time and can be used as collateral for borrowing

• Guaranteed investment return