In this episode, John Smallwood of Smallwood Wealth Management answers the question, “What Is Life Insurance?” and gets you to start thinking about it as an important piece of your wealth plan.
John is the author of 5 Ways Your Wealth is Under Attack. He has lectured extensively on financial planning and has received the Five StarSM Wealth Manager Award for 2011, 2012, 2013, 2014, 2015 and 2016.
John’s strength lies in his ability and commitment to continually improve the level and quality of the financial planning process. His dedication to his clients’ growth involves an evolving strategy that strives to meet the demands, desires, and needs of his clients in a continually changing economic environment.
Some key takeaways of this episode are:
- Life insurance is simply a contract between the insured and an insurance company that will deliver a certain sum of money (capital) in the future when the insured dies, in exchange for a payment (premium).
- Life insurance is a way to insure your most important asset―yourself, or more specifically, your income-generating potential.
- It is meant to provide replacement income in the event of premature death.
- The replacement income will be there to pay off mortgages and debts, pay future inheritance taxes, provide money to put kids through college, pay for bar and bat mitzvahs, Sweet 16 parties, cars, and all the things you would want to give your family in life.
- There are numerous ways that the capital can be delivered to your beneficiaries.
And think about it―life insurance is the only financial insurance that insures something that is definitely going to happen.
In future episodes we’ll get deeper into the different types of life insurance and their uses, of which there are many.
Discussing life insurance can be emotionally difficult for some people, but it is one of the best ways to protect your most important asset―you.
Our goal at Smallwood Wealth is to establish a plan for you that provides maximum coverage for your entire life, that is owned in the most efficient manner, and that allows you to maximize your wealth potential, enjoy your wealth, and eventually pass your wealth to your favorite heirs—not to taxes.
Give us a call at 732-542-1565 or schedule a free 30-minute wealth conversation. We look forward to speaking with you.
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