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Life Insurance Protector
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Is my life insurance protected from my potential creditors?

The simple answer is no. However, there are exceptions to this general rule. Without going into specifics, certain family member beneficiaries along with irrevocable beneficiaries create protection for your life insurance.

What kinds of things could happen that would put my life insurance at risk?

Demands from personal guarantees, lawsuits for professional negligence, lawsuits for third party liability (car accident for example); to name a few.

Do I not have insurance for those types of risks?

Most likely; you would have professional and third-party liability insurance. But those types of insurance have limits and would not deal with personal guarantees.

My life insurance is owned by my holding company, does that not provide protection for my life insurance?

Yes, but it is not 100% protected. Your holding company could still be attacked by unsecured creditors, particularly coming from the shareholder level.

What is the likelihood of my company or me facing a lawsuit that cannot be defended?

Probably remote but the question you should consider is: “if something does happen and I lose my life insurance can I recover?”.  The honest answer is no because time is not on your side, you are older and may not qualify for life insurance due to your age or a health condition.

How does the Life Insurance Protector™ protect my corporate owned life insurance?

The Life Insurance Protector™ protects your corporate owned life insurance because it is appointed the irrevocable beneficiary of the policy.

My advisors have told me that my corporate owned life insurance must appoint my company as the beneficiary to comply with tax law. Is this correct?

Generally speaking, your advisors are concerned about taxable benefit rules, the capital dividend account and dispositions. The Life Insurance Protector™ was created to be tax neutral, none of these concerns are affected by its use.

Why would I use the Life Insurance Protector™ to protect my life insurance?

Risk management and peace of mind knowing that your life insurance is 100% protected and available for your estate plan and family. Ask yourself how that plan or your family would be effected if your life insurance was lost to creditors.

For more information on R. Paul Jacobson, Q.C.,the critical thinker and inventor of the Life Insurance Protector™please visit Jacobson Law Office

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