Not having life insurance is a bad idea, wealth management CEO says

Oct 06, 2011

Life insurance is necessary, according to one CEO.

Life insurance premiums have dropped and people are living longer, according to John Napolitano, CEO of U.S. Wealth Management in Braintree, Massachusetts. With this in mind, he said in the Patriot Ledger that now is the time to purchase a life insurance policy

Napolitano said that as longevity improves, long-term care insurance premiums will rise. He said some professions see the same trend in the near future for life insurers while their conservative reserve assets are yielding very little. This may be another reason to get a life insurance plan settled as soon as possible, Napolitano said.

"Life insurance isn't only used for income replacement for your heirs," Napolitano said. "It is commonly used to help reduce estate taxation, to fund the succession of a business or as an additional benefit to your most valuable employees in a tax-favored manner. The best advice is to speak to a qualified professional to get the straight scoop on how it fits into your financial plan."

Michele Knight, CPA and owner of Knight Accounting and Technology, said life insurance may be a good idea for financial reasons alone. She said for those who have significant debts should get life insurance for the sake of their loved ones.

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