Cindy Chiellini is a Lexington, South Carolina, financial professional who serves as a registered representative at Centaurus Financial. With a focus on meeting individual client needs, Cindy Chiellini has experience in providing universal life insurance solutions.
A permanent form of coverage that remains in force throughout the life of the policyholder, universal life insurance is distinct in that it is structured with a flexible premium. What this means is that the policyholder determines how much to put into the policy beyond a set minimum. The money deposited then accumulates on a tax-deferred basis.
Another flexibility is that policyholders can typically borrow some part of the cash value of the policy at favorable terms. Interest payments made on these policy loans have the advantage of transferring back into the cash value of the policy. At the time of the policyholder’s death, beneficiaries receive the policy’s benefit. Whether this is tax-free or not depends on how the specific policy is structured.
One consideration regarding universal life insurance is that accessing the policy’s cash value can increase the risk of the policy lapsing, which can cause a tax liability in situations where the policy terminates prior to the principal’s death.
Securities and advisory services offered through Centaurus Financial, Inc. Member FINRA and SIPC, a Registered Investment Advisor. Centaurus Financial, Inc. and Cola Wealth Advisors are not affiliated companies. Please visit Cola’s website for more information: https://www.colawealthadvisors.com/.
A permanent form of coverage that remains in force throughout the life of the policyholder, universal life insurance is distinct in that it is structured with a flexible premium. What this means is that the policyholder determines how much to put into the policy beyond a set minimum. The money deposited then accumulates on a tax-deferred basis.
Another flexibility is that policyholders can typically borrow some part of the cash value of the policy at favorable terms. Interest payments made on these policy loans have the advantage of transferring back into the cash value of the policy. At the time of the policyholder’s death, beneficiaries receive the policy’s benefit. Whether this is tax-free or not depends on how the specific policy is structured.
One consideration regarding universal life insurance is that accessing the policy’s cash value can increase the risk of the policy lapsing, which can cause a tax liability in situations where the policy terminates prior to the principal’s death.
Securities and advisory services offered through Centaurus Financial, Inc. Member FINRA and SIPC, a Registered Investment Advisor. Centaurus Financial, Inc. and Cola Wealth Advisors are not affiliated companies. Please visit Cola’s website for more information: https://www.colawealthadvisors.com/.
