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Fleming Financial Services Blog

At Fleming Financial Services, Inc., our role is to assist our clients in defining and realizing their financial objectives and goals. We work with our clients to implement personalized plans designed for their unique situations. Our areas of concentration are: Retirement planning, Estate and Wealth Transfer strategies, and Business Continuation planning. We emphasize the importance of conducting our business with integrity and professionalism. As a member of PartnersFinancial, an independent national financial services company, we are able to provide access to sophisticated resources for the benefit of our clients. Some of the professionals with our firm are currently registered to conduct business through NFP Securities, Inc. With those additional resources in place, we help facilitate the complex corporate and personal financial decisions our clients must make.

AXA Equitable Life Insurance Company- Charitable Planning - Part 1

Thomas Joseph Thomas Joseph , 10/7/2014
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Insuring tomorrow/Consider the possibilities Family2Take a Fresh Look at Your Life Insurance Your life insurance is a remarkable asset, more valuable than you may have imagined. Consider the possibilities:
  • What begins as life insurance may evolve into a fund for retirement, as a paid-up annuity or cash for reinvestment.
  • You can borrow against your insurance policies, often at low rates of interest.
  • Life insurance can play a vital role in a business buyout arrangement or deferred compensation plan, or even as security for a loan.
  • Life insurance grows in value tax-free and your beneficiaries generally will receive the proceeds of your life insurance free of income tax.
  • Life insurance can provide “liquidity” — a source of ready cash that will be available to your executor to pay your estate’s debts, settlement costs and taxes.
Loans and withdrawals reduce the policy’s cash value and death benefit, and increase the chance the policy may lapse.  If the policy lapses, is surrendered or becomes a MEC, the loan balance at such time would generally be viewed as distributed and taxable under the general rules for distribution of policy cash values. In addition, withdrawals, policy loans and any accrued loan interest may cause your policy to lapse even if you are in a period of coverage under the No Lapse Guarantee Rider. Speak to your financial professional before taking any withdrawals and policy loans.  A Satisfying Option Life insurance also can be used to make significant gifts to worthwhile causes, with exceptional tax advantages. Here are a few ways life insurance can be used to enlarge your support: A Gift of an “Unneeded” Policy — Suppose your family is grown and no longer needs a $50,000 policy purchased many years ago. Let’s assume further that the cash surrender value of your policy is $20,000 and the premiums cost $500 annually. If you contribute the policy to a qualified charity and continue paying the premiums, you will be entitled to an income tax charitable deduction of about $20,000, reducing your taxes by $5,600 if you are in a 28% tax bracket. In addition, each year you will be entitled to another $500 deduction for the annual premiums you pay, saving $140 in income taxes. At your death, the full $50,000 proceeds will be used for important programs. © 2011 AXA Equitable Life Insurance Company.  All rights reserved.