Life Insurance as Part of Estate Planning

There is a trend in the United States that is called “the graying of America,” which means that Americans, on average, are getting older. The baby boomers who were born in the 1950s and 1960s are either already retired or nearing retirement.

For those who are lucky enough be well off, one thing they can do is use life insurance as part of estate planning because of its unique tax advantages and the ability to avoid gift taxes as well.

We need to add a disclaimer here because these laws can change at any time. For our discussion in this post, we used the existing IRS rules as of December 2019. 

Work with your tax accountant, attorney, other advisors, and your insurance agent at Bob Korvas Agency Inc. serving Niles, IL and the surrounding area, to get information about the current rules when implementing any estate planning.

Life Insurance as an Estate Planning Tool

Currently, life insurance death benefits are not considered taxable income. You need to report receiving the benefits to the IRS but the amount is not included in your taxable income. One way for elderly adults to give something to their kids and grandkids is to buy single-premium life insurance and make them the beneficiary. Upon your death, any benefits paid to them are tax-free, if the laws stay the same.

Avoiding the Gift Tax

The current rules allow an annual gift of up to $15,000 that you can give to anyone. This amount is not considered taxable income for the gift recipient.

If you buy a life insurance policy that accrues cash value, any cash value above the $15,000 is taxable, if you give the policy to another person while you are still alive. If you give a life insurance policy that has a cash value of less than $15,000, you can also buy an annuity at the same time that gives them a check each year until your death that is less than $15,000 to pay the premiums. The cash value builds up tax-free and the tax-free death benefits are paid when you die.

Summary

These are just a few ways that life insurance can be an excellent tool in estate planning. Be sure to get competent tax and legal advice. Then, work with your agent at Bob Korvas Agency Inc.in Niles, IL to get a quote for all your insurance needs.

3 Ways to Protect Your Business From Vandalism and Theft

While many business owners do not want it to happen, there is always a chance that your business could be the next victim of a vandalism attack or theft. At Bob Korvas Agency Inc. we want to offer our customers in the Niles, IL area three of the best ways to protect their business while they are opened and closed from vandalism and theft. 

1. Install an Alarm System

The first thing that you should do as a business owner is to install an alarm system that requires a code for entry and can be armed when the business is not occupied. This alarm system will trigger a phone call to law enforcement if entry is made without a code and the thieves will be caught quickly. If they identify an alarm system right away, most of them will be deterred from attempting to break into your business or cause any damage due to cameras. 

2. Light up the Perimeter

Arm your outside perimeter with motion sensors and external lighting at the entrances to the building. This gives your employees and customers a clear view of the door and minimizes hiding places by the perpetrators. If they are able to be seen, they will move on past your business. 

3. Clean up the damage quickly

If your business does fall victim to a vandalism attack, you want to have the damage cleaned up and corrected quickly. The reasoning for this damage is often to deter your business potential and incite a public reaction from you, as the owner. Also, leaving this viewable for a long period could put your business as a target for future attacks. 

Secure it with Commercial Insurance

The best option for business owners in Niles, IL is to supplement their business security with commercial insurance. Call our agents at Bob Korvas Agency Inc. today for more information.