Insurance Services

: : Roland A. Vitanza, J.D.
Specialist in Life Disability and Long Term Care Insurance
631.923.1595 ext. 342  
G.R. Reid Consulting Services, LLC  

Whole Life Insurance "...The Most Versatile Financial Instrument Ever Devised for The Protection of Families and Businesses…."

The Insurance team of G.R. Reid Consulting Services strongly believes in the worth Whole Life Insurance can provide for its clients.  Whole life insurance has several different guaranteed and non-guaranteed values. However, the diverse range of uses for the values Whole Life Insurance provides are truly what set it apart from other assets.  This article will give a review of the attributes, tax savings, and uses involved with Whole Life Insurance.  



Guaranteed and Non-Guaranteed Value of Whole Life Insurance:
Guaranteed Values of Whole Life Insurance:
A Guaranteed Death Benefit
A Guaranteed Level Premium
A Guaranteed Cash Value, which grows yearly until it is equal to the face amount of the policy at a specified age, usually age 121.



Non-Guaranteed Value:

Mutual companies will provide a whole life insurance policyholder with a yearly dividend, this benefit is not guaranteed. Dividends can either be paid in cash, they can be used to reduce policy premiums, or they can be used to purchase additional insurance.  



Diverse Uses of Whole Life Insurance: 

Human Life Value and Estate Planning

Human life value is equivalent to the income earning potential of an individual over their lifetime. The ability to provide income for one’s family must be protected from death.  Therefore, whole life insurance can be used to replace the lifetime earning potential of a family’s breadwinners. Furthermore, the death benefit allows for the capability to pay estate and inheritance taxes at death, while also leaving a legacy for heirs.



Business Protection

Whole life insurance has many uses when it comes to business planning. Whole life insurance can fund buy-sell agreements and stock redemption plans; fund of supplemental retirement programs; create indemnification from loss of key employees; and assist in paying loans and mortgages.



Asset Maximization

The presence of Whole Life insurance allows the policyholder to consume more of their assets in retirement because their assets will be replaced through the presence of a permanent and guaranteed death benefit. Therefore, through correct planning, Whole Life Insurance owners may permit themselves to spend down their assets during retirement and rely on a tax-free death benefit to replenish the entire value of their estate. This would increase cash availability in retirement while insuring beneficiaries receive the maximum value of the estate, tax-free.


The G.R. Reid Consulting Services Insurance Team is waiting to assist you in finding the correct insurance coverage for you and your family.