Life insurance is an integral part of any well-designed estate and financial plan. If structured properly, life insurance can provide tax advantages and leveraging that no other financial product or strategy can offer. Life insurance can provide for: 1) income replacement, in the event of premature death, 2) estate liquidity, to leverage the eventual death tax liability, and 3) cash accumulation.
The challenge is not only understanding the complexities and features of insurance contracts, but obtaining objective advice. The fact that insurance agents are commission based creates an inherent conflict and biased recommendations. At Newport Private Capital, we pride ourselves in being trusted advisors and not product salespersons.
Another important point to note is that our primary revenue source is investment management fees, so we can afford to discount commissions in order to reduce the insurance premiums paid by our clients. In addition, we are completely independent of any one particular insurance carrier.
Included in our complimentary tax and financial plan, we: 1) perform detailed capital needs analysis to determine the optimal amount of insurance coverage, 2) educate and inform clients regarding the suitability of their insurance alternatives, such as permanent vs. term insurance policies, as well as the related product features, and 3) create customized insurance strategies.
The key to successful risk management is to minimize uncertainties and reduce risks to the fullest extent possible. Life insurance is often the most cost effective and viable solution for achieving these objectives, and transferring potentially catastrophic costs to an insurance company in return for an affordable, planned premium.