Life Insurance: The Ugly Duckling of a Financial Plan

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Published October 01, 2012

Life insurance is one of the most misunderstood financial tools in the marketplace and at times it has even been called “the worst financial investment someone could ever make.” On the contrary, life insurance is really like the ugly duckling in the story by Hans Christian Andersen.

At first glance life insurance appears to be ugly because many people think you have to die in order for it to be a good investment. However, the opposite is true. It can actually be one of your greatest investments because it has living benefits that can be utilized during your lifetime. Once you begin to understand the living benefits of this tool, you too will see it as a “beautiful swan,” a financial investment like no other.

Let’s look at the qualities of what most would consider an ideal (swan) investment.

1. Guaranteed Values (Both cash values and death benefits)
2. High Rate of Return (Compared to similar secure investments)
3. Tax Advantages (Both during accumulation and at death)
4. Control, Use, and Flexibility
5. Liquidity (Accessible without penalty or taxes via policy loans)
6. Dividends Paying
7. Sold by Reputable Sellers (It can be purchased from A, AA, or AAA - rated companies)
8. Reduced Market Risk Profile (It is not correlated to market movements)
9. Self-Completing in the Event of Death
10. Self-Completing in the Event of Disability
11. Enhanced Creditor Protection (State Specific)

We can find each of these “ideal investment” qualities in a properly designed whole life insurance policy. A properly designed life insurance policy can do all of this and more.

At Certus Financial Group, we focus on the living benefits of policies (not the death benefits, which is a bonus). The extraordinary utility provided by a life insurance policy when properly designed is what makes it become the “swan” of your financial plan in the accumulation phase, distribution phase, and also the preservation phase of your planning.

To understand more about this investment option and how you can begin to utilize its living benefits contact us today at (404) 585-1474.

Kevin Downs is registered with and offers securities through Kovack Securities, Inc. Member FINRA / SIPC.  6451 N Federal Hwy Suite 1201 Fort Lauderdale, FL 33308 Investment Advisory services are offered through Kovack Advisors, Inc. Certus Financial Group is not affiliated with Kovack Securities, Inc. or Kovack Advisors, Inc.

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