Getting married or divorced, having a child or taking on debt are all examples of times in our lives where we realize the importance of having insurance.

Using Insurance as a Wealth Transfer Strategy

It is important to remember, however, that life insurance is not only a resource used to replace income, but it may be a key piece of one’s overall wealth transfer strategy. As an example, for those estates that may be subject to estate taxes, finding the resources to pay for the taxes can be problematic. Beneficiaries may find themselves without the liquid funds available to pay the taxes, which might require them to sell assets of the estate to meet their tax obligations. Structuring life insurance appropriately and coordinating it as part of an overall estate planning strategy may help individuals accomplish their estate planning goals.

Reviewing and Updating Policies

Regardless of why individuals purchase life insurance, it’s critical to review when they purchased the insurance, why they purchased it and what may have changed since the time they purchased the policy.

For example, one may have purchased life insurance 10 years ago for the purpose of leaving a loved one a legacy, but due to the type of policy and how it performed, the death benefit may now be worthless. It’s also not uncommon for people to accumulate and fund multiple policies over a lifetime but not update the ownership and beneficiary information as life evolves. This could result in the distribution of the life insurance proceeds to unintended recipients.

That is why it is critical to periodically conduct a life insurance review with your advisor. Unforeseen events in our lives, ranging from divorce to bankruptcy, can have devastating effects on how our beneficiaries are supported after our death. Tax and estate planning laws change frequently and may have unforeseen impacts on older policies. A simple review of your policies could mean the difference between assets reaching your loved ones or being frozen in probate court.

Consult With Your Wealth Team

At Mariner, our in-house risk management professionals will review your life insurance policies and can make recommendations to ensure that you have the appropriate coverage based on your objectives. Your wealth advisor will work alongside our risk management team to incorporate insurance strategies into your overall wealth plan.

This article is limited to the dissemination of general information pertaining to Mariner Wealth Advisors’ investment advisory services and general economic market conditions. The views expressed are for commentary purposes only and do not take into account any individual personal, financial, or tax considerations. As such, the information contained herein is not intended to be personal legal, investment or tax advice or a solicitation to buy or sell any security or engage in a particular investment strategy. Nothing herein should be relied upon as such, and there is no guarantee that any claims made will come to pass. Any opinions and forecasts contained herein are based on information and sources of information deemed to be reliable, but Mariner Wealth Advisors does not warrant the accuracy of the information that this opinion and forecast is based upon. You should note that the materials are provided “as is” without any express or implied warranties. Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. Past performance does not guarantee future results. Consult your financial professional before making any investment decision.

Mariner Wealth Advisors is under common control with insurance agencies. Certain representatives are licensed insurance agents with those agencies and are compensated for the sale of insurance-related products.

Mariner is the marketing name for the financial services businesses of Mariner Wealth Advisors, LLC and its subsidiaries. Investment advisory services are provided through the brands Mariner Wealth, Mariner Independent, Mariner Institutional, Mariner Ultra, and Mariner Workplace, each of which is a business name of the registered investment advisory entities of Mariner. For additional information about each of the registered investment advisory entities of Mariner, including fees and services, please contact Mariner or refer to each entity’s Form ADV Part 2A, which is available on the Investment Adviser Public Disclosure website. Registration of an investment adviser does not imply a certain level of skill or training.