The more things change, the more we’re stuck with the certainty of essential reality.
While we live, we must provide for ourselves and all who depend on us; we all will die and leave behind a legacy, certainly one of reputation, perhaps one of material substance. Life insurance has long been part of the process and it looks like doing so far into the future.
Who needs life coverage? Everyone. Babies and young children are often insured by responsible parents and grandparents. The policies serve as more than a hedge against their worst expectations: the cash value grows and compounds over the coverage term, providing benefits for the child when they reach maturity.
For example, a newly minted college student could borrow on the value of her policy – thereby helping to defray the cost of tuition and sundries – tax free. When the apron strings are finally cut, the insured child, now adult, can take over the premiums with a healthy nest egg already accumulated.
Major financial institutions and other corporations commonly provide life insurance to key executives. These top employees are paid a targeted bonus at year end; they pay taxes on the sum; the remainder is then used to pay-up their life policy. This strategy pads the executive’s portfolio with a low-risk asset and a host of benefits that can support their own long-term wealth management plans.
High-net-worth clients are often rightly worried about the tax implications of leaving a major estate to their heirs. Life insurance is an effective tool for passing their financial legacy to loved ones and cherished causes without the tangle of probate courts or the danger of complex tax liabilities.
For more, please see:
Life Insurance: There’s Something For Everyone | Forbes