Halley Dodson, LLC Halley Dodson, LLC

Additional Uses for Life Insurance

  • Tax Protection: Life Insurance proceeds paid to a beneficiary are not subject to Federal or State income tax or the PA state inheritance tax. Also cash values of life insurance grow without current income tax.
  • Add’l Retirement Savings: Additional place to save without income limits or restrictions
  • Help pay taxes on IRAs: help offset large income tax bills to beneficiaries with insurance proceeds
  • Child with special needs: ensure money is available to take care of your special needs child
  • Single Premium Life: Pay a one-time premium and have growing cash value and life coverage
  • College Funding: provide funds for college for children and/or grandchildren
  • Long Term Care Benefits: Many newer life policies will allow you to access your insurance amount to pay for assisted living, nursing home expenses, and/ or home health care as noted in other sections of our site.
  • Buy-Sell Funding: Provide funds to buy out a partner or stockholder in a closely held business
  • Key Person Coverage: protect your company against the loss of a key person
  • Deferred Compensation: defer comp from high income tax years to retirement years
  • Equalize Inheritance: provide funds to one beneficiary if another gets business assets
  • Estate Planning: provide funds to pay Federal Estate Taxes without disrupting business assets

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