Celebrate a Wedding with the Gift of a Lifetime

Celebrate a Wedding with the Gift of a Lifetime

by Richard S. Bernstein on Mar 23, 2018

Loans

By: Arthur L. Bernstein & Todd A. Wise, Esquire

A wedding is one of the seminal moments in a couple’s life. The event is planned, a registry is made and the future is bright for the newly formed partnership. The gifts that friends and family choose can range from household appliances, help with a honeymoon, to a down payment on a house. These are all gifts that help send a couple on a successful and happy journey in their marriage. A very useful gift for a couple that is just as helpful and provides lifetime protection is the gift of permanent life insurance. Considering a couple will have many financial obligations throughout their partnership, permanent life insurance is a great financial asset for a couple to start a life together. It’s a nest egg that can be one of the most beneficial and protective assets that a couple can own.

An appealing aspect of properly structured permanent life insurance is that it builds cash value. This is the asset portion of a life insurance product that provides ready to use cash that can be pulled from a policy. Pulling cash from a policy can be done in a few ways. One is to take a loan against the policy. Taking a loan against the policy allows its owners to effectively be their own bank, as there are no tax consequences and the rate is favorable compared to a bank loan. A policy loan is a great way to provide liquidity for a down payment on a house, paying tuition, or any other life circumstance that needs liquidity. Imagine the value this could provide a couple in time of need.

Another reason purchasing life insurance for a newlywed couple is a great idea has to do with the benefits of purchasing an insurance policy at a young age. The advantages to this are threefold. It’s cheaper, ensures insurability in case a policy is needed for estate planning purposes, and there’s also a policy in place in case of another life event. In the unfortunate event of a divorce, life insurance is often needed to collateralize a child support or alimony obligation, and if the spouse seeking life insurance is uninsurable due to age or health, a policy may become cost prohibitive. We’ve seen individuals come to us for this specific reason, only to see the cost of a policy to be incredibly expensive. Knowing the value of a life insurance policy when young is important if one wishes to avoid such circumstances later in life.

When buying a gift for newlyweds or considering what you’ll need in life before starting a marriage, consider the importance of permanent life insurance. It’s a fundamental financial tool everyone should have access to throughout life.

Questions? Comments? Concerns? For a confidential consultation with one of our experienced advisors, call us at 561.689.1000.

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Todd A. Wise, Esquire

Todd A. Wise, Esquire is the founding partner of WiseLieberman, PLLC, a marital and family law firm located in Palm Beach County. The American Institute of Family Law Attorneys recognized Mr. Wise as the 10 Best Attorneys in Florida for Exceptional and Outstanding Client Service for 2017-2018.  You may contact him at 561.488.7788 or help@wiselieberman.com.