Texas Life Insurance Strategies

Posted on February 20, 2014 by

Why might the wealthy be directing more money into this middle-class bedrock?

For generations, American citizens have thought of life insurance as a midlife acquisition of the middle class. Today, that perception is less correct.

Wealthier Americans seem to be purchasing more life insurance. These individuals are recognizing what it may help to accomplish for their families and their corporations. They see the twofold taxation benefit offered by full life and universal life policies – the death benefit goes untaxed, and the policy has a chance to accumulate money value thru a tax-deferred savings or investment account.

As tax levels may rise before the end of the decade, money value life insurance may seem increasingly fascinating to those in the top tax brackets.

Here is some recent history to mull over:


  • 1. In 2007, a striking 55% of tax free investment gains universal life and whole life policies belonged to the wealthiest 10% of U.S. Families. In reality 22% of these assets belonged to the wealthiest 1% of American families. (That information comes from the Fed.)
  • In that same year, the life insurance industry research group LIMRA conducted a survey for the Wall Street Journal. It found that policies for $2 million and more made up almost 40% of the face price of entire life and universal life policies sold that year. In 1997, large policies made up just 10% of the life assurance market; in 1987, they made up 1% of it.
  • Prudential Financial Inc. Announces 31% of its life assurance policy sales in 2009 were made to homes with investable assets of more than $250,000. In 1999, that demographic accounted for just 19% of its life insurance polices in force.1


When you consider that households with changed gross incomes above $250,000 face a 0.9% income tax increase and a new 3.8% investment tax in 2013, you have one more factor that may make a contribution to the trend.2

An option to think about. Here in Texas, plenty of my clients see life insurance as an alternative investment in the current day’s market uncertainity. Whether you live in Austin, Dallas, Houston, San Antonio, or any of our great Texas towns, you may want to consider a life insurance policy as a resource to pay estate taxes or aid a buy-sell agreement with your company. This strategy may have merit as a complement to your retirement method particularly given the volatility of the stock market and the possibility of higher earnings taxes in the following couple of years.


S. Brett Anderson

Allsure Insurance Advisors
Toll Free: (800) 373-8781





2 http://online.wsj.com/article/SB10001424052748703890904575297351898565426.html.

S. Brett Anderson

Allsure Insurance Agency

Reasonable Life Insurance for Texas Home Business Owners and Families.

Allsure Insurance Agency is a nationwide broker concentrating on Life, Health, and Annuites for smaller businesses, people, and famlies. We believe its our job to supply up to date information not only for our clients , but for the people in Texas that are looking for cheaper choices for a life insurance policy. . You can follow us on our blog page at http://www.allsureinsurance.com/blog/or you may visit our website athttp://www.allsureinsurance.com

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