Life insurance covers many different types of needs for families and businesses. Affiliated Insurance Agencies has relationships with dozens of highly rated life insurance companies to ensure you have the most objective and appropriate recommendation for your specific set of circumstances. There is no single product that is the best fit for every circumstance, so the team at Affiliated Insurance Agencies created a process for each type of insurance need that focuses on your specific goals and objectives.

The list below represents the most common needs for families:

Income Replacement
The most common need for life insurance is income replacement. Despite how much an individual earns, many families are highly leveraged and require all or most of those funds to maintain their current standard of living. When a family is dependent on one or both spouses’ income(s), it is critical to ensure life insurance coverage is in place to potentially replace the required income stream.

Estate Liquidity (Net worth in excess of $5.49M)
For affluent families, the federal estate tax can create a major obstacle in transferring wealth.  Life insurance owned inside of an Irrevocable Life Insurance Trust can provide liquidity for the estate to avoid selling assets at an unintended time or that are intended to be kept in the family.

Performance Evaluation of Existing, Permanent Policies
Permanent life insurance policies are different from nearly any other type of insurance.  Even with the timely payment of premium, policies can underperform due to over exuberant hypothetical assumptions at the policy’s inception.  Permanent life insurance is a financial product that requires periodic care.  If you have never reviewed your permanent policy, it’s time to do so.  A proper review can potentially save you money or improve your policy.

The list below represents the most common needs for businesses:

Key Person
The most valuable assets of any company are not the buildings, land or equipment – it’s the people!  Nearly every privately held business has a select few people who are critical to the ongoing success of the company.  It’s imperative the company maintain protection on those individuals to be able to hire, recruit and train a replacement in their absence (and still make payroll).

Buy/Sell Funding
A Buy/Sell Agreement identifies a buyer for a business in the event of an owner’s death.  The agreement guarantees a market for the future sale for business and that the business passes on to the remaining owners.  The agreement also establishes a fair market value for the business and (when funded) provides liquidity for the business to buy the deceased owner’s shares.  Life insurance to fund the agreement is typically less costly than borrowing funds or using the company’s working capital and allows for the leveraging of premium dollars.

Executive Benefits
Qualified plan limitations can prevent employers from providing adequate retirement benefits for their key employees.  As a result, employers commonly look to alternative methods to reward their most productive and valued key executives.  Alternatives to traditional compensation strategies can provide flexible options for employers.

Do You Have Enough Life Insurance?

Despite the amount of income a person earns, many families are highly leveraged and require all or most of those funds to maintain their current standard of living. When a family is dependent on one or both spouses’ income(s), it is critical to ensure life insurance coverage is in place to potentially replace the required income stream.

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Contact an Agent

Bart Springer
tel 636 255 8585
direct 636 534 5837
cell 314 625 0099
bart@aiastl.com 

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