Fraternity-Testvériség, 2011 (89. évfolyam, 1. szám)
2011-01-01 / 1. szám
Spring 2011 of the money they’ve saved. If you ask clients what will happen if they die while they’re in their high earning years, many say, “Well, I’ve got my term insurance.” But what they don’t realize is that their term insurance doesn’t keep up with inflation or offer many of the other benefits, unlike permanent insurance which has cash-value accumulation and tax-benefits. Both Bodine and Megyeri agree that liquidity is one of the best permanent insurance benefits that should be promoted. Bodine says, “You have access to your cash values for any reason and that offers leverage, perhaps for other outside investments or collateral for a loan.” 2. Multiple Benefits What many also fail to realize is that permanent insurance can help them reduce taxes and provide continuity for survivors. For example, Financial Advisor Timothy Radden of Phoenix, AZ Congratulations Congratulations to HRFA President, Les Megyeri, for receiving the Abraham Lincoln Award from the American Hungarian Foundation to be presented at the 48th annual Carousel Ball on April 30th, 2011 in New Brunswick, NJ. President Megyeri is being honored for his military service, his years of professional service as counsel in the Legislative Office of the U.S. Congress for the House Judiciary Committee, his years as an immigration attorney, his support of Hungarian causes, and as President of HRFA whereby he has enhanced the appreciation of Hungarian culture in America and has aided the Hungarian community-at-large. August J. Molnár, Co-Chairman, Board of Directors of the American Hungarian Foundation, said, “This award was inspired by the life and words of the sixteenth president of the US, Abraham Lincoln, and reflects what he believed about the great role the immigrants and their descendants played in American life.” HRFA is proud that President Megyeri now joins the ranks of the many illustrious people who have been honored with this award. tells of an extremely successful businessman that without his daily management skills, his business isn’t worth much. On paper, it’s worth a lot but his taxes are high. If something would happen to him, his wife and children probably would receive nothing because they won’t be able to sell it. His death certificate will negate the business’s high valuation. Radden helped this businessman devise a way to reduce income taxes and estate taxes and keep the business alive so that it can be sold when he retires or dies. Radden’s program is designed to train key employees to take over in the present owner’s absence, hire a replacement- in-training that will run the business until it can be sold for an appropriate price, and therefore, properly compensate the wife and children. The tax-free rate of return allowed for internal growth inside the permanent insurance policy and is comparable to what a CD pays, but without the risk that is present in the owner’s IRA, in his business, in his 401 (k), and in his brokerage account. There is nothing certain but the permanent insurance. Bodine, the Ft. Wayne, Ind. advisor, says he encourages people to buy permanent insurance not because they’re going to die, but because they’re going to live. He explains the benefits of permanent life insurance because a perfect foundation is guaranteed to build everything else on and is also a great savings vehicle for any financial plan. He says, “The benefits of the waiver-of- premium-rider is an industry-exclusive feature that you can’t get in any other financial investment. If I become disabled today, my contribution will continue to go into my permanent life insurance portfolio to age 65, a great benefit. And the money will grow tax- free because it’s a contact between the insurance company and the client, a tax benefit that most agree will remain.” Another benefit for professionals is that permanent life insurance is protected from creditors and lawsuits. No one can touch the equity inside the permanent policy. If one becomes terminally ill, many permanent products speed up medical payments and in some cases, riders are offered that will pay out half of the death benefit, tax-free, prior to death. Permanent insurance also carries special benefits for people collecting Social Security benefits because the dividends of permanent life don’t offset Social Security payments. Bodine adds, “Even municipal-bond income offsets Social Security income, so permanent life provides people with more ‘freedom to live’.” Thus, permanent life seems so obviously one of the best “investments” one can make. Perhaps mistakenly, term insurance has overshadowed the benefits of permanent life. The advantages are endless when permanent life offers liquidity, cash-value accumulation, tax- benefits and is the most secure and certain of all investments. Resources Willis, Dave. “Building A Compelling Case of Permanent Insurance,” ADVISOR TODAY, January, 2007, pp. 31-34.
