Why? Because people who make lots of money have to spend some quality time on estate planning. There is also an abundance of smart reasons why one or more life insurance policies can be advantageous.
How a Permanent Life Insurance Policy Can Benefit a Celebrity
A permanent life insurance policy allows you to first of all, accumulate money in a cash value accumulation plan which has conservative but steady growth. Even better is that you won’t have to pay any capital gains.
The cash value accumulation portion of your policy is also an asset. This means that you can borrow against it which gives you instant cash liquidity at your disposal when you need it.
Also, the death benefits which you can pass onto your heirs such as your children or even your grand children, or other beneficiaries such as you favorite charity, will receive the benefits in a tax deferred lump sum.
Your children for example, will be able to cover the expensive tax costs which can occur on your estate without having to sell off valued assets such as property, art, and other collectibles.
A celebrity will also be able to set up their estate and protect their beneficiaries in cases of divorce. Additionally, you can also use a life insurance policy in setting up a trust which also has many tax advantages.
There are plenty of reasons in how a celebrity can benefit by including life insurance in setting up tax shelters within their estate. As the methods and opportunities are fairly extensive, they would be best advised to take up the matter with their financial or tax advisor to learn more about the benefits of celebrity life insurance.
How Much Will Life Insurance Cost a Celebrity?
Many celebrities have large estates worth a bundle. They would want large policies to reflect their worth as that is the best way to factor it in as they plan their estates and gain liquidity in the process.….(continued on page 2)