LIAM 2025–Week 3: Life Insurance as a Financial Planning Tool
It’s more than coverage — it’s coordination.
Disclaimer: This content is for informational purposes only and should not be considered personalized financial advice. Please consult a licensed professional before making any decisions.
Beyond the Basics
Life insurance is often viewed as a contingency plan — something to consider “just in case.” But when thoughtfully integrated, it can serve as a versatile component of a broader financial strategy. From estate liquidity to business continuity, life insurance offers planning advantages that extend well beyond the death benefit.
Strategic Roles Life Insurance Can Play
🏛️ Estate Planning
• May help address estate tax obligations
• Can provide liquidity for final expenses without disrupting long-term assets
• Useful in balancing inheritances when assets are illiquid (e.g., real estate, business interests)
💼 Business Succession
• Often used to fund buy-sell agreements between partners
• Can offset financial impact from the loss of a key contributor
• Supports continuity planning for privately held businesses
💰 Retirement Planning
• Certain permanent policies may accumulate cash value
• May offer supplemental income options through policy loans or withdrawals (if structured appropriately)
• Potential for tax-deferred growth and tax-advantaged access under specific conditions
❤️ Charitable Giving & Legacy Goals
• Enables larger planned gifts to nonprofits or causes
• Can be structured to benefit both heirs and charitable organizations
• Offers flexibility in timing and distribution of philanthropic intentions
A Fictional Case Study: Strategic Integration
Meet “Chris,” a 52-year-old business owner with two adult children and a growing estate. Chris wants to:
• Transfer ownership of his business to a partner
• Leave a meaningful gift to a nonprofit
• Minimize estate tax exposure
Approach:
• A permanent life insurance policy is used to fund a buy-sell agreement
• A second policy names a nonprofit as beneficiary
• Chris’s estate planning attorney and financial advisor coordinate coverage with trust documents
Outcome:
Chris’s business transition, charitable goals, and estate plan are aligned — all through coordinated use of life insurance.
Is Life Insurance Right for Your Plan?
Not every policy fits every objective. Consider evaluating:
• Current financial priorities
• Existing coverage and potential gaps
• Tax implications and estate size
• Long-term legacy or philanthropic goals
Next Steps
If you’re exploring how life insurance might contribute to your overall financial strategy, let’s start the conversation.
📅 Schedule a Strategic Coverage Review
We’ll walk through your goals, current policies, and planning opportunities — no pressure, just clarity.
Final Thought: Life insurance isn’t just about what happens later. It’s about how you shape outcomes today — for your business, your family, and your long-term vision.
Investment advisory services offered through Redhawk Wealth Advisors, Inc., an SEC
Registered Investment Advisor. SEC Registration does not imply any level of skill or
understanding. Redhawk Wealth Advisors and Patten Financial Group are unaffiliated and separate legal entities.
