Life Insurance Recommendations for 2019

At Bye Financial Group, LLC, we want you to be as protected as possible as you go into the New Year. Here are a few life insurance recommendations for 2019 to guide you. We serve Grand Ledge, MI and the surrounding areas. 

 According to reports about the Tax Cuts and Jobs Act (TCJA), many changes were made to federal tax law, and four, in particular, that will affect life insurance.

  • First is the increase in the lifetime gift tax exclusion, which means increased exclusion rates for large lifetime gifts, at least for the next several years before the act expires. It will affect existing life insurance policies because they will no longer be exposed to estate tax during the next eight years, but remember this change is temporary.
  • Second, there is a reduction in the corporate tax rate maximum, which increased the benefit of purchasing permanent insurance in some cases but generally does not affect a typical life insurance purchaser. 
  • Third, there are different regulations for life settlements which also will not affect your basic life insurance policy. 
  • Finally, there are some changes in regulations for life insurance company finances which include a change to the time period required for capitalization and amortization of policy acquisition. It has increased from 10 years to 15 years. This may end up affecting the pricing of life insurance for the clients, depending on a few factors.

These changes have a great impact on people with vast estates, corporate life insurance purchasers, and a smaller impact on people purchasing personal life insurance, although you may find a change in prices and some tax benefits to your family. Due to these changes in the TCJA it is recommended that you keep any policy you have, and upgrading or purchasing a policy now will also be beneficial to your family over the next 8 years of the change.  

If you have any questions or are ready to purchase life insurance, contact us at Bye Financial Group, LLC. We proudly serve the people of Grand Ledge, MI.