Get Life Insurance to Pass Generational Wealth to Your Heirs
Baby Boomers: “We walked to school uphill in a snowstorm. Both ways!”
Generation X: “We had to use payphones to call our moms to pick us up from the skating rink.”
Millennials: “We didn’t have any apps on our cell phones!”
Every generation has its gripes.
What this shows is that everyone knows suffering - at least to some degree.
Some people suffer more than others.
Especially when it comes to finances.
You could be a Boomer or a GenZ going through dire financial straits.
If so, or if you’ve been there before, you know how much being broke sucks.
Don’t you want your kids to avoid that struggle?
Life insurance is the best way to make that happen.
A suitable life policy can pass generational wealth to your heirs, giving them a more promising future than you had.
Keep reading to learn how life insurance can give your heirs a key to their dreams for a low-cost premium each month.
What is Generational Wealth?
Financiers love fancy terms for simple concepts.
Generational wealth means to leave behind a sizable inheritance to your heirs.
Passing down wealth allows those you leave behind to get the best start in life.
They can use that money when they’re just starting out to:
Fund their college education
Start a business
Follow their passions
Pass on generational wealth to their heirs
This passing the torch financially helps to secure your family’s financial future.
And life insurance is steadily gaining popularity as the best vehicle to give your heirs a solid head start in life.
Why Life Insurance?
A recent Shwab survey showed that a majority of generational wealth is passed using real estate, investments, and cash.
These are wealthy Americans who may have received a head start themselves. Or they worked their entire lives accumulating wealth they plan to pass on.
If you weren’t born with a silver spoon in your mouth. And you got started late on the nest-egg saving, not to worry.
Life insurance allows you to build generational wealth in a flash.
You simply talk to a state licensed life insurance agent to get a customized life insurance policy.
Life insurance is an affordable way to protect your family financially after you pass away.
Today’s selection of simplified issue life insurance policies require a simple, 15-minute phone call to find a tailored policy made just for you.
Depending on your needs and budget, you could secure a significant death benefit for a low-cost premium each month, often with living benefits that protect you in life!
That easy phone call could help you protect and provide for the next generation.
Giving Advantages to the Disadvantaged
Families that have struggled for generations now have the opportunity to even the playing field.
Minority families, for instance, have a way of providing generational wealth that wasn’t available to previous generations.
For example, 86% of Black Americans, who traditionally experience a wealth gap compared to other races in America, say that passing on wealth is their most important financial goal.
A life insurance policy can fill that gap for your future generations, putting the American Dream at the fingertips of those you care about most.
Tax-Free Death Benefit Gives Your Heirs More When You Pass
Earlier we mentioned other ways of passing generational wealth that don’t include life insurance.
These included real estate, investments, and cash.
Keep in mind that each of these assets is taxed before they can be passed on.
This leaves significantly less value to your heirs should you be fortunate enough to go this route.
Another win in the life insurance column is that life insurance death benefits get passed on tax-free.
Whatever death benefit you put in place is what your beneficiaries will receive…
…with not a single cent going to Uncle Sam.
Which Life Insurance is Best For Generational Wealth?
A customized life insurance plan may include a term policy, whole life policy or IUL.
Here are the differences to keep in mind.
Term Life Insurance
A term life policy offers temporary coverage that may last 15, 20, 30 years or more.
The benefit of term policies is that you often get substantial coverage with living benefits.
This is why term is often used to cover substantial loans like mortgages.
Mortgage protection insurance can ensure your family stays in the home after your death.
Provided, of course, that you pass before the loan is paid off in 20 or 30 years.
The thing you have to remember about term life insurance is that the policy does come to an end at some point.
When that expiration date hits, say goodbye to your coverage.
The fact that term life insurance expires like milk or medicine means that it may not be the best solution to pass generational wealth.
Whole Life Insurance
Whole life insurance lasts your whole life. It is otherwise known as permanent insurance.
You never have to worry about your whole life policy expiring.
The downside of a whole life policy is you may not get as much coverage as a term life policy.
Most whole life policies max out at $40,000 death benefit.
Though there are exceptions, particularly if you agree to a medical exam.
Whole life also tends to be more expensive than term life.
However, another benefit of whole life insurance is that it accumulates cash value.
Over time, your life policy could build enough cash to borrow against or cash out entirely.
This dual package of cash value and death benefit makes whole life insurance an ideal policy to pass on generational wealth.
However, there is one more life insurance type you should know about.
IUL - Indexed Universal Life Insurance
An indexed universal life policy or IUL is like combining a term and a whole life policy and injecting your new creation with steroids.
The “indexed” aspect of an IUL means that it is based on the performance of a stock index, such as the S&P 500.
Like a whole life policy, an indexed universal life policy accumulates cash value.
When the market does well, your cash value grows.
But here’s the amazing kicker. When the market does poorly, you don’t lose any money.
IULs have a “Floor” that means no losses take effect. You merely won’t accumulate any cash growth that term.
Compare this to 401ks that can lose money when the market drops, as many have seen in recent months.
What makes IULs ideal for passing on generational wealth is that they come with a death benefit.
Started early enough, an IUL can double your money, and lead to a significant death benefit - all tax-free.
Stop the Struggle and Give Your Heirs the Best Chances in Life
Generational wealth can give your kids the best start for when they reach adulthood.
It’s like starting the baseball game on second base, or the swim race at the halfway point.
You can build generational wealth in a variety of ways, eliminate debt, buy a home, or start a business, but those are never guaranteed.
Life insurance gives your kids the best chances in life, and the death benefit is locked-in as long as the policy remains in-force.
No matter what generation you’re in, you have a chance to do something your parents may not have done for you.
Start the process of passing generational wealth on to your heirs.
Lock in a low-cost policy today by getting a quote from a dedicated agent at Little Family Security. We look forward to helping.
