Michael Whitaker & Associates, LLC
Chartered Financial Consultant

Insurance Planning

Learn how insurance planning can protect, enhance and maximize your IRA, Pension and Tax Plan, whether it is through a Multi-generational strategy, maximization of your pensions, or protecting your heirs by offsetting taxes from your IRA.

Enhance – Multi-generational

A Multi-Generational strategy is for individuals who want to create a financial legacy that lasts generations. This strategy is based on passing of an IRA directly from the IRA owner to the grandchildren. The tax deferral period allowed by the IRS is often dramatically increased, versus passing the IRA on to the children and then the grandchildren. The best feature of this planning method is structuring of assets to create a legacy for multiple generations. If you’re looking to help your children and grandchildren, this can be an effective strategy.

Maximize – Pension Maximization

When choosing a pension option at retirement you are typically given a choice between Life Only, Joint or Survivor benefit monthly income. Generally Life Only Option is the larger monthly income option. With the Pension Maximization strategy you can purchase a life policy to replace the Joint or Survivor benefit. You can purchase a life insurance policy for your beneficiary. The tax-free death benefit is then used to replace the lost pension income.

Protect – Offset Taxes

When your IRA passes to your heirs it is considered a tax event. With some planning, you can off-set the taxes due to your heirs. Using your gains or RMD from your IRA, you would purchase a life insurance policy for the estimated taxes due. By purchasing a life insurance policy, the tax free death benefit to heirs can be used to pay the taxes due to the IRS.