Life Insurance

Life insurance is often the least understood financial tool that people use.  We understand life insurance, both how and where it can provide value to a client’s plans. Our process for life insurance is similar to our wealth transfer – estate planning processes.

Life insurance can and often does play a significant role in a family’s goals.  Properly priced and constructed life insurance provides liquidity and stability and a means for accomplishing varied and complex needs. Life insurance has many unique characteristics that can make it an appropriate solution for a variety of uses:

  • Income tax free payments at the death of the insured
  • Policy can accumulate cash on a tax-deferred basis
  • Policy cash values can also be accessed on a tax-advantaged basis

Our clients often use life insurance to meet personal and philanthropic goals:


  • Income Protection – provide cash for surviving family members
  • College Funding – provide cash for college education of children or grandchildren
  • Debt Protection – provide cash to pay off an existing mortgage or other personal debt
  • Wealth Creation – provide cash for an inheritance or equalize inheritances among family members
  • Estate Expenses – provide cash and liquidity for estate taxes and expenses, eliminating the need to liquidate existing estate assets
  • Gifting Leverage – provide opportunity to leverage the use of the annual gift tax exclusion(s), the applicable exclusion and/or Generation Skipping Transfer Tax exemption


  • Wealth Replacement – life insurance is used with many charitable gifting programs as a replacement of assets that were gifted to charity
  • Gift Creation – provide cash to create a significant donation to charity at death
  • Gift Leverage – provide cash to maximize the eventual charitable donation at the death of the insured.

Business Goals

Our clients often use life insurance to meet their business goals:

  • Business continuity – life insurance provides the liquidity to purchase the ownership interest of a deceased owner
  • Key Person – provides cash to the business in the event of death of a key employee
  • Executive Recruitment and Retention – non-qualified benefit programs use insurance to fund both a death benefit and supplemental incentive plans that help attract and retain key employees
  • Business Continuation – provides funds to aid in the continuation of business in the event of death of a key revenue generator
  • Debt Protection – lenders often require life insurance to fund the payoff of business debts in the event of a death of the owner or key employe(es)

Our Life Insurance Process

Step 1. Understanding the Present

Too often the last time your insurance was discussed was the time you purchased the policy. Unfortunately it is not uncommon to find insurance that was purchased 5, 10 and even 20 years ago and has never been reviewed to see if it is indeed accomplishing what it was intended to do.

We begin your review by:

  • meeting with you and gathering all of the information and contracts;
  • if applicable request from the existing insurance company the original plan of insurance along with a current “in-force” plan. The in-force plan tells you exactly how your plan of insurance actually performed and is likely to perform in the future based on current insurance company assumptions;
  • prepare a comprehensive insurance statement for you that documents the current ownership structure of all your insurance;
  • illustrate your insurance situation using flowcharts and spreadsheet analyses;
  • if applicable provide you with current products based on the most recent pricing advantages available through our network of companies.

Step 2. Prepare for the Future

Once you have a clearer view of your current situation, we will:

  • work with you and your advisors to reformulate if necessary your insurance plans and present a revised plan that is reflects your current intentions;
  • recommend additional opportunities to that may further reduce taxes, improve efficiency and enhance liquidity;
  • illustrate the proposed changes, comparing and contrasting “after” views of the same flowcharts and spreadsheets;
  • assist in the acquisition of life insurance if appropriate.

Step 3. Monitoring the Plan

Mack Financial provides monitoring as part of our ongoing services to ensure that your plan continues to address your family and corporate objectives as they evolve over time. As part of our annual client review, we generally:

  • provide an annual update on your coverage, what it is, how it’s done and where it’s likely to go given current insurance company and economic conditions.
  • evaluate your life insurance portfolio, including ownership structures, policy performance and benefit calculations;
  • review other key aspects of your overall insurance plans including where applicable split-dollar considerations, insurance and investment diversification and gifting administration; and
  • coordinate our efforts with other advisors in the implementation of approved changes to your planning.