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LO-LA
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54+1711
22961 Woodward, Ferndale, MI
P.O. Box 254
Lathrup Village, MI 48076
356-0949
1987 HOC X28
STOCK NO. 6664
PAYMENT
$30 9
PER MO.
Join your friends and
neighbors ... leasing is
the way of the future ...
You get more car for
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CORVETTEWNVERTIBLE
STOCK NO 7080
PAYMENT
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Mir
PER MO.
Lease p mt. based on approved credit on 48 mos. closed end,
y 72,000 total iMileagew '6C
Per mile extra Charge. To get total amt multiply pymt. times 48. Subject to
use tax. 1st
_mo. in advance, sec. dep. equal to 1st mo. pymt, plate cost extra.
11
111
III
I
42355 GRAND RIVER
Just
East of Novi Rd Novi
KARIT
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FRIDAY, JULY 17, 1987
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12 OAKS MALI.
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HOURS
Mon. & Thu.
'til 9
Tu.. Wed.. Fri.
'til 6
HOWARD SHERIZEN
accessories
Call or write
Claire Arm
Mildred Rosenbaum
Insurance Is Viewed
As Major Investment
348-7000
1-696
•
Radical lifecycle changes
from singlehood to marriage,
divorce, re-marriage and
eventually retirement, signal
the need for financial ad-
justments. Recent tax reform
silenced the sizzle of many
tax shelters. Individuals are
now looking to life insurance
companies to reposition their
hard-earned assets. Why the
sudden focus on life insurance
as an investment vehicle?
Though technically not an
investment, the insurance in-
dustry has introduced an at-
tractive menu of policies to
meet changing lifestyles.
These feature long-term safe-
ty of principal — without
long-term, on-going premium
demands. The risk of losing
one's hard-earned investment
in a volatile, unpredictable
stock market has further
highlighted the safety of in-
surance as an investment
vehicle.
Flexibility is another
hallmark of today's breed of
new insurance products.
Whether the plan is called
Adjustable Life, Universal
Life, Current Assumption
Whole Life or Variable Life,
all are geared to the changing
lifestyle of today's consumer.
When cash is tight, premiums
can be frozen and outlays
discontinued without
forfeiting the insurance pro-
tection. However, once per-
sonal cash flow permits addi-
tional allocation, some com-
panies provide guaranteed
cash yields currently higher
than most bank CD's and
municipal bonds.
Life insurance currently
features several tax advan-
tages unavailable in tradi-
tional investments. First, the
inside build-up of earnings on
the premiums you pay are
free from current income
taxes. This differs from a
mutual fund or bank at-
'
Howard B. Sherizen, an
independent insurance agent and
financial planner, is associated
with the Mass Financial Group in
Farmington Hills.
cumulation in which the gain
is reported to the IRS while
earned. Thus, the equity in
the life insurance can ac-
cumulate much more rapidly
than- a comparable invest-
ment which is being chipped
away year by year through
taxes. Second, you can borrow
against life insurance policies
without paying taxes on the
money you receive. Third,
policy proceeds are Federal
Income Tax-free to the
beneficiary of your choice. If
the policy is properly arrang-
ed, both the Michigan In-
heritance Tax and the Federal
Estate Tax can be complete-
ly avoided.
Recent studies show that
life insurance policies are be-
ing substituted for non-
deductible IRAs. The amount
you can contribute is virtual-
ly unlimited, unlike the
$2,000-a-year IRA maximum.
One can have access to
his/her money without paying
any income tax withdrawal
penalty.
Single Premium Whole Life
is quickly becoming one of the
hottest tax shelters. With one
premium payment a paid-up
life insurance policy is ac-
quired. The policy is really
life insurance in name only. It
is actually an investment
dressed up in insurance
clothing to obtain the tax
preferred benefits of life in-
surance. With this type of in-
surance, most of the premium
goes toward earning interest,
rather than buying in-
surance. If someone truly
needs large amounts of in-
surance protection, this pro-
duct is probably the wrong
prescription. These type of
policies permit use of cash
value at a zero net cost: The
money is not taxed and there
is no requirement to pay back
any loan.
Under Variable Life the
cash value portion of the
policy is tied to one or more
investment options which
function in effect as mutual
funds. The policy holder may
choose between different in-
vestment alternatives.