SML Planning Minute

Episode 407 – Proposed wealth taxes are all the rage these days, and Taylor Swift, with her mansion in Rhode Island, will have to pay extra thanks to one new state law.

Hello, this is Bill Rainaldi, with another edition of Security Mutual’s SML Planning Minute. In today’s episode: an update on wealth taxes and Taylor Swift.

Back in May of 2026, we offered a quick update on the concept of wealth taxes, an idea that has gained momentum over the last few years. The situation has changed considerably since our last update. While wealth taxes are intended to target a very small percentage of the population, their implications are wide-ranging.

A wealth tax takes a completely different approach from a sales, income or estate tax. It’s a tax imposed on someone’s net worth. Here’s an example. Let’s say there’s a two percent wealth tax on individuals with a net worth above $100 million in a particular state. If you’re lucky enough to have a net worth of $1 billion, you would pay on the difference of $900 million, resulting in a tax bill of $18 million. Some proposed wealth taxes are written to occur annually, while others are written as a one-time levy.

In California, Proposition 40 is a proposed one-time tax of 5 percent on people with a net worth of $1 billion or more. The tax is designed to raise money for healthcare, education and food assistance. Proponents say the new measure will boost critical social infrastructure[1] and address income inequality.[2] Opponents counter that a wealth tax will drive people and businesses away from the state.[3]

At the time of our last discussion, it was unclear whether the proposal would make it to a formal referendum. It has, and California voters will get the final say in the November election.

Whether it passes, and what will happen once the one-time levy is complete, is still up in the air. Even though it is a one-time tax, there is language in the proposed law that suggests there may be some flexibility to re-impose the tax at a later date.[4]

So how exactly does Taylor Swift fit in? Over 3,000 miles away, her financial team might just be experiencing some “bad blood” these days. In Rhode Island, there is a new tax, officially known as the “Non-Owner-Occupied Property Tax,” but commonly referred to as the “Taylor Swift Tax,” which took effect on July 1. It is a levy on residential properties worth more than $1 million that aren’t occupied by the owner or a tenant.

Swift has a mansion in Watch Hill worth an estimated $28 million, meaning that, under the new rules, she now owes an extra tax of approximately $136,000. Overall, the tax is expected to generate $24.5 million for the state in its first year.[5]

While it’s not a wealth tax per se, opponents echo some of the same concerns as California taxpayers. In both states, the fear is that the new tax will deter people from investing in their state and drive wealthy taxpayers elsewhere.[6]

At the federal level, the question of whether a wealth tax is permitted under the U.S. Constitution is a matter of intense legal debate. The federal income tax began in 1913 after the 17th Amendment was passed to specifically authorize it. Many experts believe that a federal wealth tax would not currently pass a constitutional challenge, and it would likely take another amendment before it is allowed.[7]

Also, if a federal wealth tax ever did become law, some people fear that its scope will eventually expand. When the income tax system started back in 1913, only 1 percent of the population actually had to pay it, and at a rate of only 1 percent of net income.[8] Today it’s more like 60 percent who pay the tax,[9] and the maximum rate is 37 percent.[10] Some people believe that a wealth tax could be heading in the same direction, without any relief from other forms of taxation.

But that assumes that the proposed wealth taxes, like the one in California, will pass and be effective. Over at Financial Advisor magazine, author Cristina Enache, an economist for the Tax Foundation, has her doubts. As she puts it, “The evidence also suggests that wealth taxes harm the very demographic groups they are trying to help. Though they are often framed as affecting only the richest households, their economic effects extend much further by reducing capital formation, discouraging entrepreneurship, curtailing wage and employment growth, and ultimately weakening the overall economy.”[11]

But, in conclusion, none of this matters if the measure doesn’t pass. Prediction markets in California seem to be leaning towards a no vote, but of course, that can change.[12] And even if the answer is yes, legal challenges are widely expected.

Several other states, including Illinois, Maryland and Washington, are watching the events in California very closely. Each of those states have introduced wealth tax legislation of their own.[13]

[1] Allyn, Bobby. “Proposed California wealth tax sparks debate: Will billionaires leave the state?” NPR.org. https://www.npr.org/2026/08/20/nx-s1-5935597/california-billionaires-wealth-tax-sergey-brin (accessed September 24, 2026).

[2] Young, Robin and Tong, Scott. “Could a tax on billionaires solve California’s inequality crisis?” NPR.org. https://www.npr.org/2025/12/10/nx-s1-5639936/could-a-tax-on-billionaires-solve-californias-inequality-crisis (accessed September 25, 2026).

[3] Enache, Cristina. “Why Wealth Taxes Always Fail.” Financial Advisor. https://www.fa-mag.com/news/why-wealth-taxes-always-fail-88019.html (accessed September 24, 2026).

[4] Henderson, David. “California Wealth Tax Would Spare No One.” The Wall Street Journal. https://www.wsj.com/opinion/california-wealth-tax-would-spare-no-one-fa7ac4eb (accessed September 24, 2026).

[5] White, Tim. “‘Taylor Swift tax’ goes into effect in Rhode Island. Here’s how many could pay.” WPRI.com. https://www.wpri.com/target-12/taylor-swift-tax-goes-into-effect-in-rhode-island-heres-how-many-could-pay/  (accessed September 24, 2026).

[6] Pugh, Cameron. “Rhode Island’s ‘Taylor Swift tax’ on vacation homes aims to boost affordable housing.” The Christian Science Monitor. https://www.csmonitor.com/Business/2026/0910/taylor-swift-wealth-tax-rhode-island (accessed October 26, 2026).

[7] Bishop-Henchman, Joe. “Is a Wealth Tax Constitutional?” Ntu.org. https://www.ntu.org/foundation/detail/is-a-wealth-tax-constitutional (accessed September 24, 2026).

[8] National Archives. “16th Amendment to the U.S. Constitution: Federal Income Tax (1913).” Archives.gov. https://www.archives.gov/milestone-documents/16th-amendment (accessed September 24, 2026).

[9] Tax Policy Center. “Who Will Pay No Federal Individual Income Tax in 2025?” Taxpolicycenter.org. https://taxpolicycenter.org/fiscal-facts/who-will-pay-no-federal-individual-income-tax-2025 (accessed September 24, 2026).

[10] Internal Revenue Service. “Federal income tax rates and brackets.” IRS.gov. https://www.irs.gov/filing/federal-income-tax-rates-and-brackets (accessed September 24, 2026).

[11] Enache, Cristina. “Why Wealth Taxes Always Fail.” Financial Advisor. https://www.fa-mag.com/news/why-wealth-taxes-always-fail-88019.html (accessed September 25, 2026).

[12] DeFi Rate. “Will the California billionaire wealth tax pass? Traders see a 28% chance” Defirate.com. https://defirate.com/prediction-markets/california-wealth-tax/ (accessed September 24, 2026).

[13] Finseca. “Finseca Policy 02/24/26: State Wealth Tax Blitz & US Deficit Updates.” Finseca.org. https://www.finseca.org/finseca-policy-02-24-26-state-wealth-tax-blitz-us-deficit-updates/ (accessed September 24, 2026).

This podcast is brought to you by Security Mutual Life Insurance Company of New York, The Company That Cares®. The content provided is intended for educational and informational purposes only. Information is provided in good faith. However, the Company makes no representation or warranty of any kind regarding the accuracy, reliability, or completeness of the information.

The information presented is designed to provide general information regarding the subject matter covered. It is not to serve as legal, tax or other financial advice related to individual situations, because each individual’s legal, tax and financial situation is different. Specific advice needs to be tailored to your situation. Therefore, please consult with your own attorney, tax professional and/or other advisors regarding your specific situation.

To help reach your goals, you need a skilled professional by your side. Contact your local Security Mutual life insurance advisor today. As part of the planning process, he or she will coordinate with your other advisors as needed to help you achieve your financial goals and objectives. For more information, visit us at SMLNY.com/SMLPodcast. If you’ve enjoyed this podcast, tell your friends about it. And be sure to give us a five-star review. And check us out on LinkedIn, YouTube and Twitter. Thanks for listening, and we’ll talk to you next time.

Tax laws are complex and subject to change. The information presented is based on current interpretation of the laws. Neither Security Mutual nor its agents are permitted to provide tax or legal advice.

The applicability of any strategy discussed is dependent upon the particular facts and circumstances. Results may vary, and products and services discussed may not be appropriate for all situations. Each person’s needs, objectives and financial circumstances are different, and must be reviewed and analyzed independently. We encourage individuals to seek personalized advice from a qualified Security Mutual life insurance advisor regarding their personal needs, objectives, and financial circumstances. Insurance products are issued by Security Mutual Life Insurance Company of New York, Binghamton, New York. Product availability and features may vary by state.​

Episode 406 – What if you die with an uncashed $80,000 cashier’s check sitting in your house? That happened recently, creating a serious legal dispute between family members. It’s a reminder that neglecting the simplest financial details can have serious consequences.

Hello, this is Bill Rainaldi, with another edition of Security Mutual’s SML Planning Minute. In today’s episode, we’re going to talk about an uncashed check, the resulting family dispute, and some important estate planning lessons.

There’s an old story about baseball legend Rickey Henderson that goes something like this. Early in his career, as a young, high-end prospect with the Oakland A’s, the team gave him a signing bonus of $1 million. Rickey had always dreamed of being a millionaire. So, when he got the check, he framed it and put it on his wall.

After a few months, the team’s accounting department reached out to him, wondering why he hadn’t deposited the check. Rickey later admitted that the story was, in fact, true.[1]

What would happen if you died with a large cashier’s check sitting in your house? That’s what happened not too long ago, and it turned into a huge legal battle between the surviving family members.

The story came to light recently with the estate of Bradley Haler, who died in 2021. Shortly before his death, Haler had visited his local bank and got a cashier’s check for $80,000, which was made payable to himself. But he died a month later, having never cashed the check.[2]

After he died, Haler’s wife Rebecca found the check and cashed it. She had been told that since the check had been written before her husband died, it was not part of his estate.

Bradley’s son from a different marriage, apparently the only other heir to his estate, had a different take. He believed that since the check remained uncashed at the time of his father’s death, it should be considered part of his estate, and thus, among the assets that would eventually pass to him; at least partially.

The parties ended up in court over all this. After a lower court ruled in favor of Rebecca, the Montana Supreme Court recently overturned that decision, ruling that since Bradley didn’t endorse the check or give it to Rebecca directly, it was still part of his estate.[3]

The lesson here is simple: don’t leave uncashed checks lying around! You never know what might happen.

But for Haler, the story gets worse. In addition to his $80,000 faux pas, he also died “intestate,” meaning that he died without a will.[4] Thus, regardless of how big or small his estate was, he ended up having no input over who would eventually get his money. We do not know the value of his estate.

Under Montana law, the spouse receives the first $150,000 of the estate plus half of the remaining assets, while his child would have received the rest.[5] We’ll never know if that was what Haler would have wanted.

He is certainly not alone. The majority of Americans die without a will.[6] It may not be something everybody thinks about, but being without a will can have a huge impact.

So, if you don’t have a will, where do you start? Some people have tried to save money by using an AI-based resource to draft their will. Doing so could certainly result in some short-term savings. But is it worth it in the long run? For one thing, an AI-generated will might not even be enforceable. Also, without someone there to ask follow-up questions, an AI-generated will may be unclear or inaccurate, causing some aggrieved heirs to challenge it in court.[7] For those reasons and others, using AI to draft your will is generally not recommended.[8]

Keep in mind that there are also some legitimate concerns about the confidentiality of anything generated by AI. Any information you enter into an AI model generally becomes part of their database, meaning once it’s there, it’s accessible by anyone searching, including other family members and their counsel.

To put it another way, you need to have a will first and foremost. But the stakes are too high to trust AI to write it for you. You need the help of a qualified estate planning attorney.

So, both Bradley Haler and Rickey Henderson made some rookie mistakes that could have been avoided. As far as Henderson goes, after the conversation with his team’s accountants, he eventually removed the check from his frame and deposited it into his account. He died in 2024 as a wealthy man. Haler never had that chance.

[1] Bates, Daniel. “Rickey Henderson’s Story Of Framing $1 Million Check Resurfaces After His Passing.” Thespun.com. https://thespun.com/mlb/rickey-hendersons-story-of-framing-1-million-check-resurfaces-after-his-passing (accessed September 25, 2026).

[2] Handler, David and Lothes, Alison. “Montana Supreme Court Finds Uncashed Check Includible in Decedent’s Estate.” Wealthmanagement.com. https://www.wealthmanagement.com/estate-planning/montana-supreme-court-finds-uncashed-check-includible-in-decedent-s-estate (accessed September 25, 2026).

[3] Id.

[4] FindLaw.com. “IN RE: the ESTATE OF: Bradley James HALER (2026).” Findlaw.com. https://caselaw.findlaw.com/court/mt-supreme-court/57873.html (accessed September 28, 2026).

[5] Id.

[6] Stone, Matt. “Cover Story: 76% of Americans die without a will.” WFMJ.com. https://www.wfmj.com/news/cover-story/cover-story-76-of-americans-die-without-a-will/article_9fd22853-7df4-582d-8f63-1eb9f66e0a58.html (accessed September 28, 2026).

[7] Id.

[8] Merryman, Ashley. “Can You Use AI to Write Your Will?” USNews.com. https://law.usnews.com/law-firms/advice/articles/can-you-use-ai-to-write-your-will (accessed September 28, 2026).

This podcast is brought to you by Security Mutual Life Insurance Company of New York, The Company That Cares®. The content provided is intended for educational and informational purposes only. Information is provided in good faith. However, the Company makes no representation or warranty of any kind regarding the accuracy, reliability, or completeness of the information.

The information presented is designed to provide general information regarding the subject matter covered. It is not to serve as legal, tax or other financial advice related to individual situations, because each individual’s legal, tax and financial situation is different. Specific advice needs to be tailored to your situation. Therefore, please consult with your own attorney, tax professional and/or other advisors regarding your specific situation.

To help reach your goals, you need a skilled professional by your side. Contact your local Security Mutual life insurance advisor today. As part of the planning process, he or she will coordinate with your other advisors as needed to help you achieve your financial goals and objectives. For more information, visit us at SMLNY.com/SMLPodcast. If you’ve enjoyed this podcast, tell your friends about it. And be sure to give us a five-star review. And check us out on LinkedIn, YouTube and Twitter. Thanks for listening, and we’ll talk to you next time.

Tax laws are complex and subject to change. The information presented is based on current interpretation of the laws. Neither Security Mutual nor its agents are permitted to provide tax or legal advice.

The applicability of any strategy discussed is dependent upon the particular facts and circumstances. Results may vary, and products and services discussed may not be appropriate for all situations. Each person’s needs, objectives and financial circumstances are different, and must be reviewed and analyzed independently. We encourage individuals to seek personalized advice from a qualified Security Mutual life insurance advisor regarding their personal needs, objectives, and financial circumstances. Insurance products are issued by Security Mutual Life Insurance Company of New York, Binghamton, New York. Product availability and features may vary by state.​

Episode 405 – Competition for the most talented and skilled workers is a constant battle. Placing a “golden handcuff” on key employees can help tie the employee to the company. One of the most common and effective is a non-qualified deferred compensation (NQDC) plan.

This podcast is brought to you by Security Mutual Life Insurance Company of New York, The Company That Cares®. The content provided is intended for educational and informational purposes only. Information is provided in good faith. However, the Company makes no representation or warranty of any kind regarding the accuracy, reliability, or completeness of the information.

The information presented is designed to provide general information regarding the subject matter covered. It is not to serve as legal, tax or other financial advice related to individual situations, because each individual’s legal, tax and financial situation is different. Specific advice needs to be tailored to your situation. Therefore, please consult with your own attorney, tax professional and/or other advisors regarding your specific situation.

To help reach your goals, you need a skilled professional by your side. Contact your local Security Mutual life insurance advisor today. As part of the planning process, he or she will coordinate with your other advisors as needed to help you achieve your financial goals and objectives. For more information, visit us at SMLNY.com/SMLPodcast. If you’ve enjoyed this podcast, tell your friends about it. And be sure to give us a five-star review. And check us out on LinkedIn, YouTube and Twitter. Thanks for listening, and we’ll talk to you next time.

Tax laws are complex and subject to change. The information presented is based on current interpretation of the laws. Neither Security Mutual nor its agents are permitted to provide tax or legal advice.

The applicability of any strategy discussed is dependent upon the particular facts and circumstances. Results may vary, and products and services discussed may not be appropriate for all situations. Each person’s needs, objectives and financial circumstances are different, and must be reviewed and analyzed independently. We encourage individuals to seek personalized advice from a qualified Security Mutual life insurance advisor regarding their personal needs, objectives, and financial circumstances. Insurance products are issued by Security Mutual Life Insurance Company of New York, Binghamton, New York. Product availability and features may vary by state.​

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Episode 404 – A surprising number of people tend to waste money on things they don’t need. Are you one of them? A few small changes can go a long way in controlling where your money goes. Here are a few tips that could help improve your spending habits.

Hello, this is Bill Rainaldi, with another edition of Security Mutual Life’s SML Planning Minute. In today’s episode: some simple tricks that can help you spend less.

Have you ever bought something online that you really didn’t need? It may take a few days, but at some point, you might just ask yourself, “why did I do that?” It may not be entirely your fault. Internet marketing is designed to foster impulse buys.

That said, saving money is hard, and it’s not just about making more of it. The only way to save money is to spend less than you make. Sounds pretty simple, right? Not quite. Sometimes the hardest habits to break are the ones you don’t even know you have. In the words of Moneytrax Founder Don Blanton, you need to control the money that goes out of your pocket “unknowingly and unnecessarily.”[1]

One big problem is that many people don’t even bother to look at where their money is going. If you’re one of them, you can start by simply keeping a journal of your spending, even if it’s just for a few days. You might be surprised how much goes into small, recurring items like coffee and food delivery. And like monitoring your food intake, the simple act of tracking where your money goes might make you spend less.

In a recent article in The Wall Street Journal, author Julia Carpenter took a hard look at the psychology behind spending and came up with a few other ideas—some might even call them tricks—to help you control your spending.[2]

Carpenter points out that living in a digital world makes spending much more difficult to control. Digital subscriptions like Netflix and Spotify may not seem like much on their own. But when you add a dozen different things, the cost can become significant. It might be worthwhile to audit all of your ongoing subscriptions and cancel the ones you don’t really use or need.

Carpenter’s main point seems to be that one of the keys to controlling your spending is a concept called “friction.” Friction is an obstacle that stands between you and an item you want to buy. The more friction, the less likely you are to make the purchase.

Minimizing friction is how modern technology makes it so easy to spend carelessly. If you want some new, expensive item, it’s just a few clicks away. Previous generations had to drive to the store, go find the item they want, bring it to the cashier, pull out their credit card, and take their new toy home. And sometimes people just never got around to it.

If technology makes it so easy to spend, maybe we can do a few things to make it a little bit harder. A little bit of extra friction can go a long way in helping toward curbing your current spending. Here’s one simple trick Carpenter uses: she never saves her credit card data online. The hope is that little extra bit of required effort might help curb some unnecessary spending.

Another simple suggestion Carpenter makes: when you go online shopping, it’s ok to add whatever you really want to your cart. But force yourself to wait 24 hours before your final checkout. You might just find that you don’t really need all the stuff that you thought was so important yesterday.

And she goes even further than that. How about if, every time you realize that you’re not going to buy something you don’t need, you take that amount of money and move it into your investment account? The long-term results could be significant.

For example, if $100 per month of frivolous spending was instead invested into a brokerage account at a 7% annual return after tax, that investment account would be worth $17,308 in ten (10) years.

Here’s another suggestion: when you go out, leave your credit card out of your wallet, including any digital wallets that you may have. The idea is that if you have to use your debit card, you’ll have to think more carefully about how much you’re spending.

But just be cautious when using a debit card. Credit card purchases often provide more consumer protection than debit card purchases. Under the Fair Credit Billing Act, if you’re the victim of credit card fraud, your maximum personal liability is $50, as long as you report the billing error or unauthorized charge in writing within 60 days of the statement date. But with a debit card, your potential liability for fraudulent transactions is almost unlimited.[3] So while it may be a good psychological trick to use a debit card rather than a credit card, it’s something you need to be thoughtful about.

Another idea is to have a daily spending limit. Once you’ve reached your limit, you would need to wait until the next day to buy something else. That might also make you think about whether you really need the item or not. You can even set up spending alerts through your bank or credit card company.

One other suggestion: don’t buy anything online after 10 p.m. It’s a simple idea. As the article suggests, “Nothing good financially happens after 10 p.m.”[4]

And we’ll throw in one last suggestion; one you may have heard before. Don’t go to the supermarket when you’re hungry. It tends to result in a bigger grocery bill.

The moral of this story: Avoiding things you don’t need may have a positive effect on your financial future!

[1] MoneyTrax, Inc. “About MoneyTrax, Inc.” Moneytrax.com. https://www.moneytrax.com/about-moneytrax/ (accessed September 21, 2026).

[2] Carpenter, Julia. “The Simple Mental Tricks That Make Us Better With Money.” The Wall Street Journal. https://www.wsj.com/personal-finance/savings/brain-hacking-better-with-money-e61514ce?mod=Searchresults&pos=1&page=1 (accessed September 21, 2026).

[3] Cash, Kevin. “Credit Card vs. Debit Card: Which Is Safer Online?” Nerdwallet.com. https://www.nerdwallet.com/credit-cards/learn/credit-card-vs-debit-card-safer-online-purchases

[4] Carpenter, Julia. “The Simple Mental Tricks That Make Us Better With Money.” The Wall Street Journal. https://www.wsj.com/personal-finance/savings/brain-hacking-better-with-money-e61514ce?mod=Searchresults&pos=1&page=1 (accessed September 21, 2026).

This podcast is brought to you by Security Mutual Life Insurance Company of New York, The Company That Cares®. The content provided is intended for educational and informational purposes only. Information is provided in good faith. However, the Company makes no representation or warranty of any kind regarding the accuracy, reliability, or completeness of the information.

The information presented is designed to provide general information regarding the subject matter covered. It is not to serve as legal, tax or other financial advice related to individual situations, because each individual’s legal, tax and financial situation is different. Specific advice needs to be tailored to your situation. Therefore, please consult with your own attorney, tax professional and/or other advisors regarding your specific situation.

To help reach your goals, you need a skilled professional by your side. Contact your local Security Mutual life insurance advisor today. As part of the planning process, he or she will coordinate with your other advisors as needed to help you achieve your financial goals and objectives. For more information, visit us at SMLNY.com/SMLPodcast. If you’ve enjoyed this podcast, tell your friends about it. And be sure to give us a five-star review. And check us out on LinkedIn, YouTube and Twitter. Thanks for listening, and we’ll talk to you next time.

Tax laws are complex and subject to change. The information presented is based on current interpretation of the laws. Neither Security Mutual nor its agents are permitted to provide tax or legal advice.

The applicability of any strategy discussed is dependent upon the particular facts and circumstances. Results may vary, and products and services discussed may not be appropriate for all situations. Each person’s needs, objectives and financial circumstances are different, and must be reviewed and analyzed independently. We encourage individuals to seek personalized advice from a qualified Security Mutual life insurance advisor regarding their personal needs, objectives, and financial circumstances. Insurance products are issued by Security Mutual Life Insurance Company of New York, Binghamton, New York. Product availability and features may vary by state.​

This podcast is brought to you by Security Mutual Life Insurance Company of New York, The Company That Cares®. The content provided is intended for educational and informational purposes only. Information is provided in good faith. However, the Company makes no representation or warranty of any kind regarding the accuracy, reliability, or completeness of the information.

The information presented is designed to provide general information regarding the subject matter covered. It is not to serve as legal, tax or other financial advice related to individual situations, because each individual’s legal, tax and financial situation is different. Specific advice needs to be tailored to your situation. Therefore, please consult with your own attorney, tax professional and/or other advisors regarding your specific situation.

To help reach your goals, you need a skilled professional by your side. Contact your local Security Mutual life insurance advisor today. As part of the planning process, he or she will coordinate with your other advisors as needed to help you achieve your financial goals and objectives. For more information, visit us at SMLNY.com/SMLPodcast. If you’ve enjoyed this podcast, tell your friends about it. And be sure to give us a five-star review. And check us out on LinkedIn, YouTube and Twitter. Thanks for listening, and we’ll talk to you next time.

Tax laws are complex and subject to change. The information presented is based on current interpretation of the laws. Neither Security Mutual nor its agents are permitted to provide tax or legal advice.

The applicability of any strategy discussed is dependent upon the particular facts and circumstances. Results may vary, and products and services discussed may not be appropriate for all situations. Each person’s needs, objectives and financial circumstances are different, and must be reviewed and analyzed independently. We encourage individuals to seek personalized advice from a qualified Security Mutual life insurance advisor regarding their personal needs, objectives, and financial circumstances. Insurance products are issued by Security Mutual Life Insurance Company of New York, Binghamton, New York. Product availability and features may vary by state.​

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Hello, this is Bill Rainaldi, with another edition of Security Mutual’s SML Planning Minute. In today’s episode: don’t forget your annual policy checkup!

When it comes to taking care of your family’s needs and helping preserve your wealth for future generations, life insurance may be one of the best tools you can use. It can provide cash to your heirs when it’s needed most, peace of mind, and flexibility, very often at a reasonable cost.

But no matter who you are, your needs and financial situation are going to be different and change over time. That’s why, just like a trip to the doctor, an annual checkup is so important. Procrastination is your enemy in either case. If you wait too long to address an undiagnosed illness or a neglected financial need, it might make the problem much more difficult to solve.

When it comes to life insurance, the older you get, the higher the premiums will become. And worse, an unexpected future health development could make it difficult or impossible to obtain new coverage when you need it. The sooner you can address any potential problem, the better.

Change can come at you in a hurry. Here are just a few of the life changes that might necessitate an adjustment in your life insurance coverage:

So, you need to treat your life insurance much like you treat your own health: conscientiously, and with thorough evaluation. It takes effort. That means meeting with your advisor and getting a regular review, asking questions, and making adjustments as needed. Your future self—and the people who depend on you—will be glad you did.

When you go in for your review, you’ll need to take a good look at a few things with your life insurance advisor. You can start with some recent policy statements that show the current death benefit, cash value, and premiums due. You should also have your current overall financial statement and an accurate picture of your cash flow. This will be a good way to see if your coverage needs be changed. You will also need to be able to talk about any major life events that might have occurred since the last review.

Finally, your advisor will likely need to order a series of “in-force illustrations” on your policies. This will help provide a clearer picture of whether your current policies are performing as originally expected.

So, once you’ve gathered all the information, what exactly are you looking for? Over at LinkedIn, author Rick Bailey has a few suggestions, among them: [1]

So, it takes some work to get a clear and understandable picture of the policy and where it sits in your current situation. Is a policy change the best option? Perhaps a term conversion, Section 1035 Exchange, or even a partial surrender (if possible) might be a good choice.

An annual review is even a good idea with a term life insurance policy. The death benefit and premium might not change from year to year, but your health might, and your age definitely will. The closer your term policy gets to its end, the closer you may need to look at your conversion options because once the term is up, you’ll need to consider three things:

Has it been a while since your last policy review? Your Security Mutual Life insurance agent can help. Your Security Mutual Life insurance agent can help assemble your financial team and coordinate with your attorneys and tax professionals to review your situation, and to determine the insurance plan that will best suit your needs and objectives.

[1] Bailey, Rick. “Why Every Life Insurance Policy Deserves a Regular Review.” LinkedIn.com. https://www.linkedin.com/pulse/why-every-life-insurance-policy-deserves-regular-rick-lwdmc/ (accessed September 10, 2026).

This podcast is brought to you by Security Mutual Life Insurance Company of New York, The Company That Cares®. The content provided is intended for educational and informational purposes only. Information is provided in good faith. However, the Company makes no representation or warranty of any kind regarding the accuracy, reliability, or completeness of the information.

The information presented is designed to provide general information regarding the subject matter covered. It is not to serve as legal, tax or other financial advice related to individual situations, because each individual’s legal, tax and financial situation is different. Specific advice needs to be tailored to your situation. Therefore, please consult with your own attorney, tax professional and/or other advisors regarding your specific situation.

To help reach your goals, you need a skilled professional by your side. Contact your local Security Mutual life insurance advisor today. As part of the planning process, he or she will coordinate with your other advisors as needed to help you achieve your financial goals and objectives. For more information, visit us at SMLNY.com/SMLPodcast. If you’ve enjoyed this podcast, tell your friends about it. And be sure to give us a five-star review. And check us out on LinkedIn, YouTube and Twitter. Thanks for listening, and we’ll talk to you next time.

Tax laws are complex and subject to change. The information presented is based on current interpretation of the laws. Neither Security Mutual nor its agents are permitted to provide tax or legal advice.

The applicability of any strategy discussed is dependent upon the particular facts and circumstances. Results may vary, and products and services discussed may not be appropriate for all situations. Each person’s needs, objectives and financial circumstances are different, and must be reviewed and analyzed independently. We encourage individuals to seek personalized advice from a qualified Security Mutual life insurance advisor regarding their personal needs, objectives, and financial circumstances. Insurance products are issued by Security Mutual Life Insurance Company of New York, Binghamton, New York. Product availability and features may vary by state.​

Episode 401 – You’ve heard of acronyms such as LOL, OMG, IDK, etc. FOMO, or “fear of missing out,” is another big one. But have you heard of FORO, or “fear of running out?” It can be crippling. Here are some ways to deal with it.

Hello, this is Bill Rainaldi, with another edition of Security Mutual’s SML Planning Minute. In today’s episode, you’ve heard of FOMO. What is FORO?

Some of us are old enough to remember what it was like in the days before LOL, OMG, IDK, etc., etc. IMO, it can all be very confusing.

Certainly, most people are familiar with the term “FOMO,” or “fear of missing out.” FOMO can sometimes prompt someone to make an irrational financial decision for fear of missing out on what social media indicates is a good opportunity. It’s safe to say that the results do not always match expectations.

In our effort to keep up with the latest financial trends, FORO, or “fear of running out,” has gotten some attention recently. It is the anxiety that near or current retirees feel when they think they might outlive their money. It’s a significant issue for older Americans. As we mentioned not too long ago, on average, Americans are more fearful about running out of money than they are about dying.[1]

In many, if not most cases, there are legitimate and well-thought-out reasons for experiencing FORO. Many people are living longer than expected, dealing with increasing healthcare costs, and facing higher inflation than they expected. Add to that uncertainty when it comes to government benefits, market volatility, and the fact that many people just haven’t saved enough for retirement.

And without a regular paycheck, real people do sometimes run out of money in retirement. On average, people’s net worth will tend to peak just before retirement, then start dropping once they get into their 70s.[2] The results can be tragic if the drop goes all the way—or almost all the way—to zero.

But the fear is not always justified. In a recent article at WealthManagement.com, author Evan Cooper makes a distinction between “rational” and “irrational” FORO.[3]

Irrational FORO often goes unnoticed. As Cooper points out, some people have become used to living below their means, to the point where they just don’t feel right about spending more in retirement, even though they can easily afford it. Other people underspend simply because they don’t have an advisor to guide them, and they don’t know how much they can afford without the risk of running out.[4]

Either way, the result can be a lower quality of life, missed experiences, and making more of a sacrifice than is necessary.

Renowned author David Blanchett, head of Retirement Research at Prudential Financial, has taken a hard look at what retirees spend vs. what they can afford. Blanchett has found that, after adjusting for inflation, retiree spending tends to decrease over time. This applies across the board, even for people with more than enough assets to live comfortably and without worry.[5]

Blanchett indicates that irrational FORO is more of a problem than many people realize. As he puts it, “those retirees who could materially increase spending do not tend to do so, especially those who are older and spending at higher levels. In other words, while there are both circumstance and choice elements to the observed reductions in real spending, they cannot be written off entirely to circumstances.”[6]

There are ways to fight back against irrational FORO. Having a guaranteed lifetime income, often in the form of an annuity, could make a difference. Much like an old-style pension, an annuity may give you the confidence you need to spend your money without worry.[7]

Potential long-term care expenses also play a big role when it comes to FORO. People worry that they could have years of comfortable retirement, only to face a devastating decline with huge long-term care expenses towards the end. They may even know someone who has had this experience. Being bankrupted by long-term care in your later years is a real possibility.

But planning ahead—using either a life insurance policy with a chronic illness rider, or a long-term care insurance policy—can go a long way in helping your peace of mind, help to relieve the symptoms of FORO, and maybe even improve your quality of life in retirement.

Are you suffering from FORO? Is your FORO rational or irrational? Your Security Mutual Life Insurance agent can help you figure things out. Your Security Mutual Life insurance agent can help assemble your financial team and coordinate with your attorneys and tax professionals to review your situation, and to determine the insurance plan that will best suit your needs and objectives.

[1] Allianz Life Insurance Company of North America. “Nearly 2 in 3 Americans Worry More about Running Out of Money than Death.” Allianzlife.com. https://www.allianzlife.com/about/newsroom/2024-Press-Releases/Nearly-2-in-3-Americans-Worry-More-about-Running-Out-of-Money-than-Death (accessed June 9, 2026).

[2] DeMatteo, Megan. “Average net worth of Americans 75 and up: How much should you have saved?” CNBC.com. https://www.cnbc.com/select/average-net-worth-of-americans-ages-75-and-up/ (accessed September 3, 2026).

[3] Cooper, Evan. “Rational and Irrational FORO.” WealthManagement.com https://www.wealthmanagement.com/retirement/rational-and-irrational-foro (accessed September 3, 2026).

[4] Id.

[5] Blanchett, David. “How Spending Evolves in Retirement: A Smile, a Smirk, or Something Else?” Financial Planning Review. https://onlinelibrary.wiley.com/doi/10.1002/cfp2.70032 (accessed September 3, 2026).

[6] Id.

[7] TIAA. “How to enjoy your retirement savings and avoid FORO.” TIAA.org. https://www.tiaa.org/public/invest/services/wealth-management/perspectives/how-much-income-in-retirement-fear-of-running-out (accessed September 3, 2026).

This podcast is brought to you by Security Mutual Life Insurance Company of New York, The Company That Cares®. The content provided is intended for educational and informational purposes only. Information is provided in good faith. However, the Company makes no representation or warranty of any kind regarding the accuracy, reliability, or completeness of the information.

The information presented is designed to provide general information regarding the subject matter covered. It is not to serve as legal, tax or other financial advice related to individual situations, because each individual’s legal, tax and financial situation is different. Specific advice needs to be tailored to your situation. Therefore, please consult with your own attorney, tax professional and/or other advisors regarding your specific situation.

To help reach your goals, you need a skilled professional by your side. Contact your local Security Mutual life insurance advisor today. As part of the planning process, he or she will coordinate with your other advisors as needed to help you achieve your financial goals and objectives. For more information, visit us at SMLNY.com/SMLPodcast. If you’ve enjoyed this podcast, tell your friends about it. And be sure to give us a five-star review. And check us out on LinkedIn, YouTube and Twitter. Thanks for listening, and we’ll talk to you next time.

Tax laws are complex and subject to change. The information presented is based on current interpretation of the laws. Neither Security Mutual nor its agents are permitted to provide tax or legal advice.

The applicability of any strategy discussed is dependent upon the particular facts and circumstances. Results may vary, and products and services discussed may not be appropriate for all situations. Each person’s needs, objectives and financial circumstances are different, and must be reviewed and analyzed independently. We encourage individuals to seek personalized advice from a qualified Security Mutual life insurance advisor regarding their personal needs, objectives, and financial circumstances. Insurance products are issued by Security Mutual Life Insurance Company of New York, Binghamton, New York. Product availability and features may vary by state.​

Episode 400 – Buying a vacation property might bring you a lifetime of joyful memories. But you also need to consider the financial realities you’re likely to face. You might love the place, but you might also regret it. Think carefully before you make your move.

Hello, this is Bill Rainaldi, with another edition of Security Mutual’s SML Planning Minute. In today’s episode: is it a good idea to own a vacation home?

So, you’ve been going to the same vacation spot for years, and you really love the place. You’ve dreamed about having your own home there. Does it make sense? Is it worth it financially?

It’s a complicated decision. You may end up creating a lifetime of unforgettable memories for you, your children and grandchildren. But the financial stress might also be worse than you anticipated. Is it worth the risk? Here are some of the factors that you may need to consider:

So, assuming you’ve gone through all this, and you still want to proceed, perhaps another thought has occurred to you. What if I bought the place, used it when I wanted to, and rented it out when I’m not there? You would still get to choose when you go away; you would just try to generate some rental income during the rest of the year.

That could go a long way financially. In fact, it could be what makes it all feasible. But there are more things to consider in that situation. Here are a few of those:

When it comes to buying a vacation property, emotions can often play a significant role. You love the area, you love the house, and you already have some wonderful memories there. But you need to take a thorough look at all the financial realities before you jump in. Like a lot of other major purchases, it could be one of the best decisions you’ve ever made. But you might also end up regretting it.

[1] Ostrowski, Jeff and Martin, Erik. “How are mortgage rates determined?” Bankrate.com. https://www.bankrate.com/mortgages/how-interest-rates-are-set/#loan-type-impact (accessed August 12, 2026).

[2] Greenberg, Gregg. “Second-home buyers are making these costly financial mistakes, advisors warn.” Investmentnews.com. https://www.investmentnews.com/practice-management/second-home-mortgage/267282 (accessed August 12, 2026).

[3] Block, Eliana. “NAR Pushes Forward for Solution in HOA Master Insurance Delays.”Nar.realtor.com. https://www.nar.realtor/news/real-estate-news/nar-pushes-forward-for-solution-in-hoa-master-insurance-delays (accessed August 12, 2026).

[4] Friedman, Nicole. “Surging HOA Fees Are Pushing Homeowners to the Brink.” WSJ.com. https://www.wsj.com/economy/housing/housing-affordability-hoa-fees-d02902af (accessed August 12, 2026).

[5] Greenberg, Gregg. “Second-home buyers are making these costly financial mistakes, advisors warn.” Investmentnews.com. https://www.investmentnews.com/practice-management/second-home-mortgage/267282 (accessed August 12, 2026).

[6] Greenberg, Gregg. “Second-home buyers are making these costly financial mistakes, advisors warn.” Investmentnews.com. https://www.investmentnews.com/practice-management/second-home-mortgage/267282 (accessed August 12, 2026).

This podcast is brought to you by Security Mutual Life Insurance Company of New York, The Company That Cares®. The content provided is intended for educational and informational purposes only. Information is provided in good faith. However, the Company makes no representation or warranty of any kind regarding the accuracy, reliability, or completeness of the information.

The information presented is designed to provide general information regarding the subject matter covered. It is not to serve as legal, tax or other financial advice related to individual situations, because each individual’s legal, tax and financial situation is different. Specific advice needs to be tailored to your situation. Therefore, please consult with your own attorney, tax professional and/or other advisors regarding your specific situation.

To help reach your goals, you need a skilled professional by your side. Contact your local Security Mutual life insurance advisor today. As part of the planning process, he or she will coordinate with your other advisors as needed to help you achieve your financial goals and objectives. For more information, visit us at SMLNY.com/SMLPodcast. If you’ve enjoyed this podcast, tell your friends about it. And be sure to give us a five-star review. And check us out on LinkedIn, YouTube and Twitter. Thanks for listening, and we’ll talk to you next time.

Tax laws are complex and subject to change. The information presented is based on current interpretation of the laws. Neither Security Mutual nor its agents are permitted to provide tax or legal advice.

The applicability of any strategy discussed is dependent upon the particular facts and circumstances. Results may vary, and products and services discussed may not be appropriate for all situations. Each person’s needs, objectives and financial circumstances are different, and must be reviewed and analyzed independently. We encourage individuals to seek personalized advice from a qualified Security Mutual life insurance advisor regarding their personal needs, objectives, and financial circumstances. Insurance products are issued by Security Mutual Life Insurance Company of New York, Binghamton, New York. Product availability and features may vary by state.​

Episode 399 – Everyone wants to be liked by others, but it takes effort. Here are a few non-manipulative suggestions on how to make yourself a little more engaging and likeable.

Hello, this is Bill Rainaldi, with another edition of Security Mutual’s SML Planning Minute. In today’s episode: twelve ways to make yourself more likable.

Today we’re going to depart from our normal format of discussing new financial ideas, the latest financial news, etc. Instead, let’s take a look at a few ways in which you can make yourself into a better communicator, and perhaps a more likable person. These concepts may not affect your financial life directly, but they might make you a more successful—and happier—individual.

For me, after decades of trial and tribulation, these concepts come straight from the heart. Here are a few suggestions that can help you thrive while staying true to yourself:

Look people in the eye. Fairly or unfairly, people may judge you when you don’t make eye contact. They could think you are being deceptive or lack confidence in what you are saying. Eye contact is one of the simplest and innate ways to help connect and build rapport with someone you are interacting with.

Restate. When you’re in a conversation, this is a great way to show someone that you hear and understand them. It’s also a chance to clear up any misconceptions or misunderstandings. Start by simply saying “if I understand you correctly” or “if I’m following you thoroughly,” and restating what you thought you heard them say.

Ask questions. People respond to genuine curiosity, even if the question is one that involves our last point, restating. Questioning can help drive a more thorough conversation and may assist in creating a deeper connection. It also keeps either one of you from falling into a bad habit that many of us have, and that’s a tendency to turn the conversation towards ourselves. And should they happen to tell you about some small detail in their life, say an upcoming trip or an unusual hobby, you can try to remember that and ask about it next time, which helps drive the new conversation.

Let the other person finish speaking before you respond. We’ve all met long-winded people. Simply put, don’t interrupt. So often, people are thinking about their next response—which they often interject with —instead of actually understanding and thinking about what the other person just said. This tends to happen more often virtually than in person, but it’s something to be aware of nonetheless.

Be reliable. Show up when you say you’re going to and follow up if you said you will. Treating people consistently helps earn their respect and contributes to a positive reputation.

Don’t expect perfection, either from yourself, or someone else. You’ll never get there, no matter how hard you try. Instead, shoot for the compounding effect of small steps of improvement. When it comes to dealing with others, expecting too much can lead to frustration and disappointment. Try focusing on things that you can control.

Put it on your calendar to follow up when someone is struggling. It’s not limited to just your good friends. If someone you know is going through an illness, a divorce, or some other major challenge, they would likely appreciate you keeping up with them. A simple text or phone call, at the right time, can really make a difference in someone’s life. It shows you care.

Avoid raising your voice. This is a tough one. Some people believe that a good way to keep your voice down is to use the “4 second rule.” If you get triggered by something somebody else says, wait four seconds before responding. That might be enough. Why pause for four seconds? Research indicates that it’s the cutoff point between awkward and non-awkward conversation.[1]

Avoid attacking others when they’re not around. When you speak ill of a third party, how is the person you’re talking to supposed to react? Many people, perhaps justifiably, might think “Does he say bad things about me when I’m not there?” In some ways, this is human nature. We all like to surmise, gossip and judge a bit. But giving it some thought before speaking may be to your advantage, whether now or in the future.

When someone attacks you, don’t defend yourself immediately. A simple inquiry, such as, “Tell me more about why you feel that way,” can work wonders. If you’re still angry after that, call a timeout. The same concept applies when it’s a text, phone call or email. A good practice is to let the first draft of an angry message sit there overnight before you send it. You might just feel differently or change your mind after sleeping on it.

Try really hard to remember someone’s name. Very often, when someone asks, “what’s your name again?” what they really mean is that they likely never learned it in the first place. It can be helpful to repeat the name back to them out loud as soon as you hear it.

One technique I like to use is to try and associate that person’s name with someone else I already know well.

Also, in a quiet moment later on, you might add a note on your smartphone noting person’s name for later reference.

And that brings us to our last tip…

Use your cell phone discreetly. Try to stifle it when you’re talking to someone else. Especially when you’re meeting them for the first time. Cell phones are a part of everyone’s day. While there are exceptions, when speaking with someone, it’s best to have your cell phone out of the way (and not checking every text, email or call) so they feel you’re engaged in the conversation and putting them first.

One final thought. Many years ago, a wise man explained a difficult, but undeniable truth to me: no matter how nice of a person you are, not everyone is going to like you. It’s best not to dwell on why. Perhaps the best you can do is just be yourself. You want to be liked, of course. Everyone does. But the irony is that it doesn’t usually work if you try too hard.

[1] Murphy, Bill. “How Emotionally Intelligent People Use the 4-Second Rule to Become Exceptionally Persuasive.” Inc.com. https://www.inc.com/bill-murphy-jr/how-emotionally-intelligent-people-use-4-second-rule-to-become-exceptionally-persuasive.html (accessed August 27, 2026).

This podcast is brought to you by Security Mutual Life Insurance Company of New York, The Company That Cares®. The content provided is intended for educational and informational purposes only. Information is provided in good faith. However, the Company makes no representation or warranty of any kind regarding the accuracy, reliability, or completeness of the information.

The information presented is designed to provide general information regarding the subject matter covered. It is not to serve as legal, tax or other financial advice related to individual situations, because each individual’s legal, tax and financial situation is different. Specific advice needs to be tailored to your situation. Therefore, please consult with your own attorney, tax professional and/or other advisors regarding your specific situation.

To help reach your goals, you need a skilled professional by your side. Contact your local Security Mutual life insurance advisor today. As part of the planning process, he or she will coordinate with your other advisors as needed to help you achieve your financial goals and objectives. For more information, visit us at SMLNY.com/SMLPodcast. If you’ve enjoyed this podcast, tell your friends about it. And be sure to give us a five-star review. And check us out on LinkedIn, YouTube and Twitter. Thanks for listening, and we’ll talk to you next time.

Tax laws are complex and subject to change. The information presented is based on current interpretation of the laws. Neither Security Mutual nor its agents are permitted to provide tax or legal advice.

The applicability of any strategy discussed is dependent upon the particular facts and circumstances. Results may vary, and products and services discussed may not be appropriate for all situations. Each person’s needs, objectives and financial circumstances are different, and must be reviewed and analyzed independently. We encourage individuals to seek personalized advice from a qualified Security Mutual life insurance advisor regarding their personal needs, objectives, and financial circumstances. Insurance products are issued by Security Mutual Life Insurance Company of New York, Binghamton, New York. Product availability and features may vary by state.​

Episode 398 – It’s not always easy to understand how life insurance works. But there are some unique tax advantages that often get overlooked. Here are seven of them.

Hello, this is Bill Rainaldi, with another edition of Security Mutual’s SML Planning Minute. In today’s episode: seven life insurance tax benefits many people are unaware of.

Is there really such a thing as a simple financial product? Maybe. But in many—if not most— cases, tax law introduces complications that can make some products difficult for the typical consumer to understand. But with that comes opportunity. You’re going to pay taxes anyway, but along the way, you might as well make an effort to minimize them.

Life insurance, particularly permanent life insurance, offers its share of tax complexities. But many of these, if you truly understand them, can help produce advantageous after-tax results. Here are seven tax benefits you might not be aware of:

1) In most cases, the life insurance death benefit is income tax-free. This is probably the biggest, and most well-known, tax advantage of life insurance. When you receive a large sum of cash after someone dies, the taxation depends on where the money comes from. For example, if you inherit an individual retirement account or IRA, you are likely to be facing a significant income tax bill. Not so with a life insurance death benefit. We must caveat, that we are referring to typical lump-sum payouts directly to a named person that are generally income tax-free. Exceptions can occur due to interest earnings, estate size, policy transfers, or complex ownership structures. These are not typical scenarios, however.

Using the typical scenario, the difference is potentially huge. If you’re in a 32 percent tax bracket for example, your $1,000,000 of pre-tax cash will only be worth $680,000 after tax. But with the few exceptions already referenced, a $1,000,000 of life insurance death benefit is worth the full $1,000,000 after tax.

2) Tax-deferred growth of cash value. In most circumstances, a permanent life insurance policy will generate a cash value, which is also the amount you would receive if you surrendered the policy. Note that a term life insurance policy generally does not have any cash value.
The cash value within a permanent policy—in most but not all cases—grows on a tax-deferred basis, unlike, say, a mutual fund or a stock that pays a dividend. The gains within the policy are not taxed from year to year. Gains only become taxable in certain circumstances, such as a cash surrender of the policy, certain withdrawals above your taxable basis, or if the policy lapses.

3) Tax-free borrowing via policy loans. You have the ability to borrow against your policy’s cash value on a tax-free basis, within limits, as long as the policy stays in force. Tax-wise, loans are treated as debt, not income. As with most types of loans other than home mortgages, interest payments are not deductible. But unlike a bank loan, the loan decision is entirely yours. You don’t have to ask anyone else to approve your application, and while you will continue to accrue interest, you are not required to pay the loan back at any particular time.

4) Receiving an “accelerated death benefit” that is generally tax-free. If you are chronically or terminally ill, you may be able to access a portion of the policy’s death benefit while you are still living if the policy includes a chronic or terminal illness accelerated death benefit provision. From a tax perspective, assuming certain conditions are met, the distribution would be treated as an income tax-free acceleration of the eventual death benefit payment.

5) Tax-free exchanges via IRC Section 1035. You can also exchange one life insurance policy for another without being immediately taxed on any gains.

There are, of course, some rules you’ll need to follow. When the first policy is transferred, the money needs to go directly from the original transferring insurance company to the new insurance company. Of course, if the original company is also issuing the new policy then there is no physical transfer. The main thing is that you can’t take receipt of the policy proceeds yourself during the exchange. Also, the new policy must have the same owner and insured as the old one. No material changes may occur but if you follow the rules, a Section 1035 exchange can be an opportunity to improve the life insurance benefits over the ones in your original transferred policy. The new policy may have a higher or less expensive death benefit, performance implications, or riders that may not have existed before or are better, all without any current tax implications.

6) A life insurance policy can help with estate taxes. Not many people think about this one. After all, federal estate tax law, as of 2026, allows you to leave up to $15 million to your heirs ($30 million for a married couple) before any federal estate tax is assessed.[1] But state estate tax laws are different. If you live in certain states, such as New York, Maryland or Massachusetts, the threshold is much lower.[2]

Estate tax rates can be high, and an Irrevocable Life Insurance Trust (ILIT) can help ensure the associated life insurance proceeds are not included in your taxable estate, thus minimizing or helping to avoid a potentially significant estate tax. If this sounds like something you’d be interested in, it is recommended to consult with a qualified life insurance professional.

7) In a business situation, life insurance can potentially have tax advantages. Businesses can find ways to use life insurance in a tax-efficient manner. This might include buy-sell agreements, key-person insurance, split-dollar arrangements, or executive benefit plans.

Premiums paid are generally not deductible for the business, but these strategies can still provide significant tax advantages to both the business and the insured individual(s).

And here’s a bonus tax-advantaged use of life insurance:

8) Potential retirement income. If the circumstances are right, a cash value life insurance policy can be used to supplement retirement income. This doesn’t happen overnight; it’s a strategy that generally needs to be planned out well in advance.

Once a life insurance policy has been well-capitalized (and this usually takes someone many years) it is possible to access cash value through periodic tax-free loans and withdrawals to the policy’s tax basis. This strategy can provide retirement income that is both tax-free and not subject to Required Minimum Distributions or RMDs. Such loans and withdrawals are generally not guaranteed.

As is always the case with taxation, things can become very complicated, and there are some pitfalls to watch out for. One of the most notable is something called a “modified endowment contract.” The IRS specifies how much money can be paid into a life insurance contract, and if you exceed those limits, many of the tax advantages could be lost. It’s too complicated to discuss in detail here, but it’s a good illustration of why you need the help of a qualified life insurance professional.

Interested in pursuing some of the special tax advantages discussed here? Your Security Mutual Life insurance agent can help. Your Security Mutual Life insurance agent can augment or help assemble your financial team and coordinate with your attorneys and tax professionals to review your situation, and to determine the insurance plan that will best suit your needs and objectives.

[1] Internal Revenue Service. “Estate Tax.” IRS.gov. https://www.irs.gov/businesses/small-businesses-self-employed/estate-tax (accessed August 6, 2026).

[2] Loughead, Katherine. “Estate and Inheritance Taxes by State, 2025.” Taxfoundation.org. https://taxfoundation.org/data/all/state/estate-inheritance-taxes/ (accessed August 6, 2026).

This podcast is brought to you by Security Mutual Life Insurance Company of New York, The Company That Cares®. The content provided is intended for educational and informational purposes only. Information is provided in good faith. However, the Company makes no representation or warranty of any kind regarding the accuracy, reliability, or completeness of the information.

The information presented is designed to provide general information regarding the subject matter covered. It is not to serve as legal, tax or other financial advice related to individual situations, because each individual’s legal, tax and financial situation is different. Specific advice needs to be tailored to your situation. Therefore, please consult with your own attorney, tax professional and/or other advisors regarding your specific situation.

To help reach your goals, you need a skilled professional by your side. Contact your local Security Mutual life insurance advisor today. As part of the planning process, he or she will coordinate with your other advisors as needed to help you achieve your financial goals and objectives. For more information, visit us at SMLNY.com/SMLPodcast. If you’ve enjoyed this podcast, tell your friends about it. And be sure to give us a five-star review. And check us out on LinkedIn, YouTube and Twitter. Thanks for listening, and we’ll talk to you next time.

Tax laws are complex and subject to change. The information presented is based on current interpretation of the laws. Neither Security Mutual nor its agents are permitted to provide tax or legal advice.

The applicability of any strategy discussed is dependent upon the particular facts and circumstances. Results may vary, and products and services discussed may not be appropriate for all situations. Each person’s needs, objectives and financial circumstances are different, and must be reviewed and analyzed independently. We encourage individuals to seek personalized advice from a qualified Security Mutual life insurance advisor regarding their personal needs, objectives, and financial circumstances. Insurance products are issued by Security Mutual Life Insurance Company of New York, Binghamton, New York. Product availability and features may vary by state.​