How Life Insurance Can Help You Leave a Financial Legacy
Life insurance is one way to help you leave a legacy to your family and make sure their financial future is protected. With life insurance in place, your beneficiaries will receive a lump sum of money when you die. Typically, your beneficiaries won’t have to pay any taxes on the money they receive from your life insurance policy.* That’s good news, because they’ll be able to enjoy the full value of the payment.
Here’s another way a life insurance payment can lessen the impact taxes may have on your family: A portion of the death benefit from a life insurance policy can be used to pay any taxes that may be due on your estate. That way, you know you’ll be passing on the full value of your estate to your heirs.
Of course, you'll want to speak to your tax advisor about your personal situation before making any decisions that may impact your or your family's tax responsibility.
Guarantee Your Legacy Stays Intact
It’s a common misconception that all permanent life insurance policies will last for your lifetime. But that’s not always true. The good news is that there are some policies that may have a feature known as a “guarantee against lapse” or a “no-lapse guarantee.”
The guarantee against lapse ensures that the death benefit portion of your financial legacy is secure no matter what. Your coverage will stay in effect as long as the premium is paid regularly and on-time. A life insurance policy with a no-lapse guarantee can help you feel more confident about the financial legacy you’re leaving to your loved ones.
Build Your Legacy Your Way. Your Financial Advisor Can Help.
There’s no one right way to create a legacy, but life insurance can help. Permanent insurance can be used to strengthen any plans you already have in place or be the foundation of your legacy. Just remember, the most important part of any legacy plan is knowing that it will remain intact for future generations, no matter what.