Whether your financial goals are business or personal, life insurance can be an important part of your long-term strategy.
Pacific Life offers a diverse life insurance product line designed to meet a variety of family and business needs.
In addition to the flexibility of setting up your own premium payment schedule and choosing the death benefit that is best for you and your family, a variable universal life insurance policy also allows you to allocate your net premium payments among a choice of investment options. A Pacific Life variable universal life insurance policy can give you access to a wide variety of premier portfolio managers.
How Much Life Insurance Do I Need?
How much protection does a family need? That’s a difficult question because it depends on so many factors that can’t be predicted – like how long you will live. A simple approach is to plan for the worst case (e.g., immediate death) and decide how much money surviving family or loved ones will need to handle such matters as:
- Final expenses, including funeral costs
- Debts, including mortgage
- Estate taxes
- College expenses for children
- Survivor living expenses
The last category is in many cases the most difficult to compute. Perhaps the best philosophy is to plan for the family to “remain in their own world” by providing the resources they will need to maintain the standard of living to which they are accustomed. An important process of financial planning is to explore the many variables and how they can affect this goal.
Number of Years to be Provided For:
If you could be sure of living a long life, this number may be small; but the purpose of life insurance is to provide a death benefit for survivors if you aren’t so fortunate.
Number of Dependents, Such as Spouse and Children:
The age(s) of children also matters, as income earnings could be limited in the case of a surviving spouse who wishes to stay at home with the children until they are older.
Desired Standard of Living:
Unless you want your spouse and children to suffer a decline in their accustomed standard of living, it is wise to consider the impact of inflation and plan accordingly.
You Have Worked a Lifetime to Accumulate Your Wealth – Let a life insurance policy from Pacific Life help you preserve it for your heirs.
You may not think of your possessions as an “estate,” nor consider what will happen to them when you’re gone. However, assuming you die in 2009, at your death the federal government imposes a 45% estate tax on property in excess of $3.5 million1 that passes from your estate to your heirs. In addition, estate taxes are due and payable within nine months of death. With this in mind, many estates may not have the liquidity necessary to pay the estate tax.
Products That May Help
Pacific Life Insurance Company’s second-to-die life insurance products have become an increasingly popular way to help preserve your wealth for your heirs. Many accountants, attorneys, and financial planners are recommending life insurance products as an integral part of their client’s estate planning needs. For a married couple, estate taxes are typically not due at the death of the first individual due to the ability to transfer assets to a surviving spouse free from estate taxation. Rather, for a married couple, estate taxes are generally due (if any) at the death of the surviving spouse. A second-to-die life insurance policy, which covers two lives and provides a death benefit upon the second insuredâ€™s death, may, therefore, be well suited to deal with the potential estate tax burden of a married couple.
Pacific Life Holds the Keys
The key features of Pacific Life’s second-to-die life insurance products include, but are not limited to, the following:
- Choice of Univeral Life, Variable Universal Life, or Indexed Universal Life
- Flexible death benefit
- Flexible premium
- Federal income tax-free death2 benefit
- Tax deferred accumulation of the policy’s cash value
Qualified, Quality Service
Let a qualified life insurance professional show you how a Pacific Life life insurance product can work to help you achieve financial security.
1 The federal estate tax exemption amount is $3,500,000 in 2009.Â The highest federal estate tax rate is 45% in 2009.Â The federal estate tax will be repealed on 1/1/10 until 12/31/10.Â Beginning 2011, the federal estate tax will be reinstated with a federal estate tax exemption amount of $1,000,000 and a maximum estate tax rate of 55%.Â Congress continues to discuss and consider legislation that, if passed, could change the estate tax exemption and estate tax rates for 2010 and beyond.
2 For federal income tax purposes, life insurance death benefits generally pay income tax-free to beneficiaries pursuant to IRCÂ Section 101(a)(1). In certain situations, however, life insurance death benefits may be partially or wholly taxable. Situations include, but are not limited to: the transfer of a life insurance policy for valuable consideration unless the transfer qualifies for an exception under IRCÂ Section 101(a)(2) (i.e. the â€œtransfer-for-value ruleâ€); arrangements that lack an insurable interest based on state law; and an employer-owned policy unless the policy qualifies for an exception under IRCÂ Section 101(j).
For more information on this subject, and professional guidance in selecting the right kind and amount of insurance coverage, contact your insurance professional.
Pacific Life Insurance Company is licensed to issue individual life insurance and annuity products in all states except New York. Product availability and features may vary by state.
This material is not intended to be used, nor can it be used by any taxpayer, for the purpose of avoiding U.S. federal, state or local tax penalties. This material is written to support the promotion or marketing of the transaction(s) or matter(s) addressed by this material.Â Pacific Life, its distributors and their respective representatives do not provide tax, accounting or legal advice. Any taxpayer should seek advice based on the taxpayerâ€™s particular circumstances from an independent tax advisor.
Pacific Life refers to Pacific Life Insurance Company and its affiliates, including Pacific Life & Annuity Company. Insurance products are issued by Pacific Life Insurance Company in all states except New York, and in New York by Pacific Life & Annuity Company. Product availability and features may vary by state.Each company is solely responsible for the financial obligations accruing under the products it issues, and its product and rider guarantees are backed by that companyâ€™s financial strength and claims-paying ability. Variable insurance products are distributed by Pacific Select Distributors, Inc. (member FINRA & SIPC), a subsidiary of Pacific Life Insurance Company, and are available through licensed third party broker-dealers.