|No matter how much money we have or where we may fall on the socioeconomic platform, none of us are getting out of here alive. It’s not the easiest convo to have or the most interesting topic to discuss, but its facts, nonetheless.|
Preparing financially for that ultimate demise can change the financial status of your loved ones and leave a legacy for generations to come.
Certain cultures are aware of this fact and since the beginning of time, have left million dollar fortunes for their families. Putting your loved ones in a position to thrive financially with or without you, can change the trajectory of their futures and place them in a position to excell and overcome financial barriers and limitations.
One of the easiest ways to ensure you leave a gift that can keep on giving is through the gift of life insurance. In my culture, burial or funeral insurance is a common trend. My grandparents and great-grandparents were disciplined enough to get insurance to cover their funerals, so we were fortunate enough to avoid car washes and fish dinner sells to bury them, but they either didn’t know the power of life insurance or weren’t properly educated on the power of its benefits.
There are many different types of life insurance (I’ll save that for another discussion) today, we’ll focus more on its power.
With every life insurance policy, you have three key components: the insured, the person who’s life is insured or “protected” by the insurance company, the death benefit, the amount of coverage or money to be paid out upon the insured’s death and the beneficiary, the person who will receive the policy proceeds or death benefit from the insurance company after the insured’s death. If you are the insured, you can choose anyone or any organization no matter their relationship to you, to be your beneficiary.
Now here’s where the power comes in! When the insured passes away, your beneficiary will receive the death benefit completely tax free. Sadness of the death aside, imagine the benefit of receiving a few hundred thousand or even millions of dollars without having to pay federal or state taxes! Or imagine if that amount of money were left to you when your mom or loved one passes away. It’s essentially like winning the lottery. And if your beneficiary depends on you financially, you could essentially be covering their college expenses, home purchase, or even wiping out their debt.
The timing of death is often unpredictable but the financial impact and result doesn’t have to be. If you’re curious about how life insurance can benefit you and your family, reach out for a free consultation.
Key: You can also insure the lives of your parents and receive the death benefit as their beneficiary.