Often times when we talk to clients they will be able to get all of the benefits that they are seeking, but they simply need to move around the money on their model. For example, they want to optimize their life insurance protection, but don’t have a lot of additional money to spend. We can often find lost dollars that can be moved towards the protection with no additional out of pocket costs.
One of our clients recently was in need of additional life insurance protection, but didn’t want to change their monthly outlay. On top of that, they were very concerned about asset protection. They had been sued in the past and wanted to make sure that they were as protected as they possibly could be. We recommended that they visit with a good estate planning/asset protection attorney, but also to move part of a non exempt asset into life insurance. They had over 200,000 in a money market and we suggested that they simply move a small amount of that money each month into a whole life insurance policy. Not only was it going to purchase them permanent death benefit, but the policy would be overfunded. Overfunding the policy would create immediate cash value and money that was into an exempt asset from creditors. Obviously, if they were to be sued that 200k in the money market would be susceptible. I asked them why they had that much in a money market and they said they wanted to have good liquidity. Liquidity is a great thing and we explained that they would have that inside the life insurance cash value too.