"I know a good team when I see it. The professionals at Gateway Financial have given us unprecedented access to the information we need, with total transparency and an unbiased approach to advice that has allowed us to protect our family’s future for generations to come."
- Art Rooney II, President, Pittsburgh Steelers
"When it comes to planning for your future, there is no more important quality to find in an advisor than trust. Gateway Financial has earned my trust through the course of a long-term relationship by delivering great results. Their professionalism and expertise helped simplify and de-risk my insurance portfolio in alignment with my legacy planning. For my entire career, nothing meant more than being able to show concrete results and Gateway delivers on that front, ensuring my family’s long-term multi-generational success."
- Jim Rohr, Former CEO, PNC Private Bank
“I can’t think of a more reputable organization than Gateway Financial nor a more dedicated community leader. Gateway Financial has made a commitment to embrace diversity and strikes the perfect balance of fiscal stewardship, planning, and social responsibility. Insurance benefits play a pivotal role in the attraction and retention of top talent and business succession planning and we are incredibly lucky to have Gateway’s innovative solution and inclusive leadership right here in Pittsburgh.”
- Sabrina Saunders, President and CEO of Vibrant Pittsburgh
"Gateway Financial understands the unique challenges – and opportunities – of a serial investor and entrepreneur. At DNS Capital, we value people and relationships first and the Gateway Financial professionals have created an environment of confidence and transparency that has guided us to create a plan for success that will help preserve the future of our multi-generational family."
- Michael Pucker, President & CEO, DNS Capital
"Having worked with Gateway Financial, I appreciate why PNC has chosen to partner with them. I truly understand my insurance portfolio and I know I can depend on Gateway to continue to deliver unwavering commitment and extraordinary service. Gateway has been a great partner to me, employing an unbiased approach and delivering results that will guarantee a solid future for many generations of my family."
- Karen Larrimer, Head of Retail Banking and Chief Customer Officer, PNC Private Bank
The Role of
Life insurance plays an important role in personal and business financial planning because of its mortality hedge, its advantageous tax structure and its favorable death benefit rate of return, which is arguably higher than that of other assets of comparable risk.
Self-Completion / Immediate Cash:
- The policy’s death benefit is paid in cash upon the death of the insured (for single-life coverage) or upon the death of the survivor-insured (for survivorship coverage) regardless of the policy year, as long as the policy is in force.
- Provides a “time hedge” for other estate tax “freeze” strategies to work.
Tax Efficiency. If positioned properly:
- If positioned properly, the death benefit is free of income, estate and generation skipping transfer tax.
- The cash value accumulates income tax free.
- Cash value withdrawals are treated on a first-in-first-out (FIFO) basis, therefore cash value withdrawals up to the total premiums paid are generally income-tax free.
- Policy loans are income tax free.
- A life insurance policy may be exchanged for another life insurance policy (or for an annuity) without incurring current taxation.
After-Tax Death Benefit Rate of Return:
- The guaranteed after-tax death benefit rate of return of premiums paid verses after-tax death benefit received at life expectancy for a guaranteed no-lapse life insurance policy generally ranges between 4.0% and 5.5%. The rate of return is higher if the insured dies prior to life expectancy and it is lower if the insured lives past life expectancy.
- To match the guaranteed rate of return that life insurance provides at life expectancy, a taxable investment (subject to an effective tax rate of 40%) must earn between 6.66% and 9.16% before tax on a guaranteed basis to life expectancy.
 For federal income tax purposes, life insurance death benefits are generally paid income tax-free to beneficiaries pursuant to IRC Sec. 101(a)(1). In certain situations, however, life insurance death benefits may be partially or wholly taxable. Situations include but are not limited to the transfer of a life insurance policy for valuable consideration unless the transfer qualifies for an exception under IRC Sec. 101(a)(2) (i.e., the transfer-for-value rule); arrangements that lack an insurable interest based on state law; and an employer-owned policy unless the policy qualifies for an exception under IRC Sec. 101(j).