Back

Why Use the FSLM policy as the basis of the self insurance fund?

Self Insuring requires developing separate, designated funds allocated for the specific purpose of providing liquidity at death. Even if a person has enough liquidity today in current assets, those assets may not be structured in the same assets remaining liquid over decades when the liquidity is needed at death. Keeping self insurance fund assets separate and designated frees clients to use the other assets in any way they choose including, spending, investing or giving without having to constantly remember and factor the liquidity problem into all future decisions.

Once the decision to self insure has been determined, the next logical question he may ask is “why should I use the FSLM policy as the basis of the self insurance fund?” FSLM policies’ Self Insuring Advantages:

• It is designed differently from any other life insurance product (which is why it received a patent after being scrutinized by the patent office for 9 years). It has management capabilities specifically designed to work as a self insurance tool and to coordine withthe FutureSystemTM planning process.
• FSLM policies have very little life insurance or other policy costs that can drastically reduce the return compared to other policies.
• It maximizes the return through tax deferral of all gains during life, and at death all of the gains become tax-free.
• The estate tax law has changed over 76 times so there is no such thing as a “permanent repeal or change”. Keeping the self insurance fund in place no matter what changes in tax law occur will not hurt any other financial decisions or needs if the plan is designed with the FutureSystemTM Planning Process.
• It may be exempt from bankruptcy and protected from creditors to varying degrees depending on state law.
• Using FSLM policies makes it easier to keep the self insurance fund intact once it is established.