Life Insurance Solves Problems

Life insurance is more than just a policy – it’s a testament to those we care about most.

At Schechter, we understand the significance of protecting and securing your client’s legacy.
If any of the following characteristics resonate with your clients’ financial situation, it's time to explore how life insurance can be a powerful tool in your comprehensive financial strategy.

UNDER-REVIEWED POLICIES 

Ensure your client’s insurance policies and estate planning documents are up to date by reviewing them with our expert team, especially if it's been over 24 months. Life insurance is more than just a policy – it’s a testament to those we care about most.

GENERATIONAL WEALTH TRANSFER 

Life insurance can help leverage gifts to provide financial security for your client’s children and grandchildren.

HIGH NET WORTH INDIVIDUALS 

If your client’s qualified plan balances exceed $3,000,000, explore how life insurance can optimize their estate planning strategy.

BUSINESS OWNERS AND GUARANTORS 

• Whether they have key employees, buy-sell agreements, or personally guaranteed debt, life insurance can protect their business interests and personal assets. 
• Attracting & Retaining Top Employees Corporate-owned life insurance (COLI) can be used to fund a non-qualified deferred compensation program (Guaranteed issue) to reward top employees.  
• Business Protection Life insurance can provide funds to help continue a business after the death of a key employee.  
• Buy-Sell Equity Life insurance can be used to make sure that a buy-sell agreement is funded, and that your clients are not in a dispute with their partner’s estate or spouse. It can also be used to equalize an inheritance to children not in the family business.

TAX-EFFICIENT INVESTMENT 

Explore alternatives to hedge funds with life insurance, offering tax-deferred growth, income, and estate tax-free benefits.

HIGH EARNERS WITH LIMITED LIQUIDITY 

• If your client earns over $1,000,000 annually without liquid net worth exceeding $10,000,000, life insurance may help secure their financial future.  
• Life insurance can provide liquidity to the family of the primary income earner if he or she dies, and the estate is still obligated to make future capital calls on investments or charitable pledges.

LIFE MILESTONES AND CHANGES 

• From the birth of a child to marriage, divorce, or changes in health, life insurance adapts to evolving needs.  
• Life insurance can be used to provide an income replacement in the event of death.  
• Life insurance can be used to pay off debt (Mortgage, credit cards, student loans, etc.) in case of premature death.

ESTATE TAX CONCERNS 

• If your client has illiquid estates over $10,000,000 and wants to avoid paying estate taxes out of pocket, life insurance provides a strategic solution. 
• Life insurance can be used to reduce or eliminate estate taxes. 
• Life insurance provides immediate, private, and tax-free funds that can be used to pay estate taxes. 
• Life insurance can be used to offset the estate tax due if the grantor of a grantor retained annuity trust (GRAT) dies before the end of the term. 
• Because life insurance is worth significantly less before death occurs, it is an excellent asset to leverage the federal unified credit and generation-skipping transfer tax exemption.

ESTATE PLANNING 

• Life insurance can equalize inheritances between beneficiaries. 
• Life insurance can be used to create an estate. 
• Life insurance can help create assets to benefit specific family members in a “blended family”. Life insurance is a good alternative to a fixed-income portfolio for individuals who have all the income they personally need and are investing for their children and grandchildren. 

SPECIAL NEEDS FAMILIES

• Helps protect the financial security of your client’s children with special needs through tailored life insurance solutions. 
• Guaranteed life insurance (usually second-to-die) can be used to fund a properly drafted special needs trust upon parent/guardian’s death to supplement government benefits (SSI, Medicaid) without risking loss of those benefits in the future. 

WEALTH ACCUMULATION AND PRESERVATION 

• Seek non-correlated, predictable, and tax-free returns with life insurance, ensuring a lasting family legacy. 
• In most states personal life insurance is protected from creditors. Through proper planning, insurance can be used to protect corporate and personal assets. 

CHARITABLE GIVING 

• Name charitable beneficiaries or add philanthropic components to your life insurance policy, leaving a lasting impact beyond your lifetime. 
• Your client’s Legacy Life Insurance may help establish a financial legacy to the intended beneficiary regardless of when they die or the size of their estate. 
• Wealth Replacement Life Insurance can be used to replace assets going to charity instead of family members at the end of a charitable remainder trust (CRT) term. Low income producing assets can be sold by the CR and reinvested to yield a higher cash flow. The excess cash flow can be used to pay premiums on life insurance. 

RETIREMENT SAVINGS 

• Life Insurance can be used for a tax-deferred supplemental retirement program. 
• The cash value of a life insurance policy could be used as a bridge until retirement begins.