After another successful busy season, it’s time to take a broader look at your clients’ needs. While tax is one important component of your clients’ financial picture, they need help in other important areas.
They may not be aware that managing risk affects their financial picture. There’s a significant relationship between your clients’ financial well-being and risk management.
Here’s one great example: The greatest potential economic loss for most clients is income loss, either through death or disability. Insurance often best addresses that risk because of the potential magnitude of the loss. If a client dies, beneficiaries inherit the death benefit free of any federal and state income tax, which can be tremendously helpful to those who were depending on the decedent’s income stream. If the policy has a cash value feature such as a universal life insurance policy, the cash value accumulates on a tax-deferred basis. It may be accessed through loans and taxed on a first-in, first-out basis, meaning that any premiums paid on the policy are taken out first and would be tax-free.