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Home > A Unique Life Insurance Offering

Life Insurance... A Mortality Hedge Where Investments Cannot Compete

We remain experts in all facets of first tier life insurance. Building deep relationships for 30 years, we serve our clients with specialized offerings through $100,000,000.

In the simplest form, Life insurance remains a gift of love, or a tool to mitigate debt. Life insurance is a risk management asset used primarily to address three concerns: Survivor income, Estate tax liquidity, and Estate equalization.

The most common use is addressing  survivor income needs. The proper life insurance policy can provide financial security for survivors in the event of the income earners premature death. For individuals building wealth, this need is often temporary; as the wealth grows, the income producer becomes "self-insured" and is able to provide for survivors with no outside support. Another common survivor income need arises in second marriages when there are heirs from the first marriage. Oftentimes, the estate plan intentionally directs the bulk of the wealth to surviving heirs, excluding the second spouse. Life insurance can be used to provide financial security for the surviving second spouse without impacting the heirs' inheritance and thereby protect the familial unit.

Regardless of ones liquidity, life insurance utilizes ones assets as a tool to simply meet  estate tax liabilities. For example, when the bulk of the gross estate is composed of real estate, closely-held business interests, or assets that the family wishes to retain, life insurance eliminates the need for a "fire sale" to create liquidity to pay the estate tax. The assets can then be transitioned or disposed of in a manner that is of the greatest financial benefit for the survivors.

Life insurance is also beneficial for  estate equalization. Most families strive to treat their children equally in estate planning. However, equalization can be a challenge. Consider, for example, a closely-held family business in which one child is intimately involved and other children are excluded. If the family business accounts for the majority of the family's wealth, it can be difficult to treat all children equally if the parents feel it is appropriate to leave the family business to the more involved child. Life insurance allows the parents to direct the life insurance death benefits to the less involved children to equalize the inheritance of the children.
Finally, many life insurance professionals encourage clients to view life insurance as an investment. Because the return on a life insurance policy is greatest in the event of premature death, life insurance can be viewed as a mortality hedge that will provide a windfall in the event of an unexpected demise. Some argue that, from an investment portfolio perspective, life insurance should be viewed as an entirely separate asset class whose performance is tied primarily to the insured's mortality rather than to the financial markets. Even in the event of a normal life expectancy, some policy illustrations show respectable internal rates of return on death benefit and /or cash value to cumulative premiums paid. Because the illustrated internal rates of return may resemble bond-like returns, many insurance professionals urge clients to view this "investment" as a portion of their overall fixed income allocation however we do not promote this general concept.

Many ultra-high net worth (UHNW) individuals have determined that the common needs for life insurance do not apply to them. This is especially true for individuals who have a relatively liquid and well-diversified portfolios, and most are able to meet potential estate tax liquidity requirements without life insurance. Depending on the level of spending, these individuals often have more than enough wealth to provide for survivors in the event of premature death. If they are not interested in owning life insurance as an investment or already have exposure to this "asset class" through existing life insurance, is there a need for life insurance?

The analysis for a life insurance need, should turn to whether life insurance is necessary to manage the risk that the client’s wealth will decline below the minimum amount the client wished to leave to children, heirs or charity at death.

This decline in wealth could occur for any number of reasons, including overspending, investment underperformance or untimely death. To determine if life insurance is appropriate, the client must first determine whether their wealth transfer goals are at risk and then evaluate how much and what type of life insurance coverage can help mitigate this risk, and this is where we excel as a practice. For a personal consultation with one of the nations first tier life producers, please contact our firm.

A Unique Life Insurance Offering

Life insurance carriers began offering return-of-premium riders on their term policies in the early 1990s as a solution to the “live-and-lose” dilemma presented by traditional 20-year term life policies.

As the name implies, this rider will allow term life insurance policyholders to recover all or part of their premiums paid over the life of the policy if they do not die during the stated term, and effectively reduces their net cost to zero if the death benefit is not paid.

In our experience, this simplified issue policy is embraced by higher income, risk adverse policy owners. We’re often told the income rider and guaranteed rate of return remains appealing to the cost and inflexibility of many permanent life offerings.
A key feature of our return of premium policies is to utilize the cash value, in lieu of distribution to pay up a reduced term benefit offered by the company. Prior to term expiry, the insured is presented an opportunity to have a reduced portion of the original death benefit usually paid until the age of 95.

This rare feature leverages living benefits of a critical or chronic illness rider, or advances the death benefit as an accelerated payment 24 months in advance if diagnosed by a physician with a terminal illness, protecting one in later years.

When a client qualifies for these unique policy benefits, the insured will have the financial flexibility to finalize their estate and have access to policy features and benefits not common.

Outstanding Living Benefits:

  • If you qualify, we have fast issue offerings from $125,000 to $300,000 available through The Galano Group LLC.
  • A simple, straightforward, non-invasive underwriting process.
  • Living benefit riders (non-ROP policies) chronic illness rider
    Provides accelerated death benefit if the insured is certified by a physician within the last 12 months as unable to perform two of six activities of daily living (ADLs) for 90 consecutive days, or requires substantial supervision to protect himself or herself from threats to health and safety due to severe cognitive impairment.
  • Critical illness rider
    Provides an accelerated death benefit if the insured is certified by a physician of having one of the following conditions: ALS, kidney failure, life threatening cancer, major organ failure, heart attack, stroke.
  • Terminal illness rider
    This rider pays 80 percent of the death benefit in a lump-sum if you provide evidence that your life expectancy is 12 months or less. Once the policy benefit is paid out, benefits will be reduced proportionally.
  • Unemployment provision
    In the event of unemployment, your monthly base premiums and riders are waived for one six-month period.
  • Residential damage rider
    If your primary residence sustains $25,000 or more of damage, your monthly base premiums and rider premiums are waived for one six-month period.
  • Common carrier death benefit provision
    If you should die in an accident while a fare-paying passenger on a common carrier (e.g., airplane, train, bus), this provision provides for an additional death benefit equal to 100 percent of the original face amount, or $250,000 whichever is less.

Additional Optional Features:

  • Return of premium
  • Disability income coverage (not available on Return-of-Premium products)
  • Dependent children's coverage
  • Disability waiver of premium
  • Accidental death coverage
  • Term Life Express offers simple to apply for 15-, 20- or 30-year level term insurance with quick underwriting (as short as three days) so you receive your policy faster.
  • Plus, the Return of Premium feature is an optional benefit that allows you to receive a refund of premiums paid upon surrender of the policy. Complete details on request.
  • Consider a Return of Premium option included for your review on 20 and 30 year illustrations.
A simple and quick process for purchasing extremely high quality term life insurance from The Galano Group LLC directly. From application to policy delivery, we quality check all processes.

Note: Term Life Express not available in New York

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Upon your completion of the Discovery Fact Finder, we will contact you with a personalized illustration from the data submitted and answer any questions you may have. All data is strictly confidential and used for this quotation only. It is critical that you give us accurate data.
2019 Short Form Fact Finder
Cautionary Statement
The information relating to precious metals on The Galano Group, LLC website, is for informational purposes only and is not to be relied on as a recommendation or an offer to buy, hold, or sell any product or service to which this information may relate. While the information is obtained from sources we believe to be reliable, we do not guarantee that it is accurate or complete. While physical Precious Metals may offer benefits not associated with other asset classes, they may be subject to storage, liquidity, accessibility, price volatility, and other issues that should be considered in determining suitability as an investment. All investors should make their own determination of whether or not to make any bullion investment, based on their own respective independent evaluation and analysis. Any Advisory referrals made by The Galano Group, LLC for APMEX orders, purchases and sales, if any, are subject to the terms of the APMEX User Agreement and the other applicable policies of APMEX. This website additionally contains only a general description of insurance coverages and is not a policy contract. Coverages under any product is subject to the terms, conditions and exclusions in the issued policy. For costs and further details of the coverage, including exclusions, any reductions or limitations and the terms under which the policy may be continued in force or see your agent or write to the company. The Galano Group LLC is fully licensed to offer insurance in NC, VT, FL, NY, NH and TX.
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