Many people may not know that life insurance is a great way to pass wealth to maximize it's impact for those you care about.
A few reasons to consider using life insurance to help build your legacy:
- It builds cash value. A whole life policy can be used as an investment tool, particularly for those with a high net worth. The accumulation can outpace many traditional investments typically used for these legacy-building purposes, such as CDs. Additionally, a whole life insurance policy can be structured to issue regular dividents if necessary.
- Tax law protects the assets. Simply put, the proceeds from a whole life insurance policy are tax-free to the beneficiary; a large advantage to those who wish to eliminate estate taxes. Additionally, the premiums paid are also not taxed, ensuring the maximum transfer of wealth possible to those individuals, organizations, and institutions you care about.