Whole Life Insurance
One method for building generational wealth is whole life insurance. Whole life insurance can offset estate taxes when a legacy is passed on from one generation to the next. When strategically used, life insurance offers many advantages, You may consider using permanent life insurance for generational wealth planning for three primary benefits: leverage, guarantees, and simplicity. With a well crafted whole life insurance policy your policy will build cash value in addition to providing a death benefit. You can use the cash value during your life to build wealth and the death benefit can perpetuate generational wealth when you give it to your beneficiaries at time of your passing.
Term Life Insurance
Term life insurance is a type of life insurance that provides coverage for a certain period of time or a specified term. 10, 15, OR 30 YEARS. Some policies will take you 80 years of age. If the insured dies during the term and the policy is active, a death benefit will be paid to the beneficiary. Term life insurance is typically the least expensive way to purchase a substantial death benefit. After the term expires, the policyholder can either forgo coverage, renew it, convert it to permanent coverage, or allow it to lapse. Term life insurance may be sufficient for most people who need a temporary safety net for their dependents. As long as your policy is active, your family is covered No exams, No waiting. Coverage starts immediately once your first premium payment is received. It can also be used to cover your mortgage. If you have a 30 year mortgage, and you are between 30 and 50 years old. You can get a 30 year term to cover the mortgage, if you should pass before the mortgage is paid off, the term life insurance will pay it off and your beneficiaries will have a home free and clear. They just have to pay the property taxes on it.
Universal Life Insurance
Looking for long-term protection while building cash value? Explore universal life insurance policies learn about flexible and guaranteed solutions to meet your specific needs.
People who choose universal life insurance are typically looking to maximize their long-term coverage and are less concerned with building cash value. They need an efficient way to give their families the long-term insurance protection they deserve.
Universal life insurance is known for its flexibility—the policy allows you to adjust your premium payments (within limits) and death benefit amount depending on your needs. This means you won’t have to sacrifice protection for your family if your financial health changes. If, after some time, you decide to lower or stop paying your monthly premiums, you can use the accumulated cash surrender value to pay for them. However, you cannot do this until your policy has accrued enough cash value.
Consider Universal Life Insurance if you’re looking for:
- The most long-term protection for your dollar.
- Protection for a longer period than typical term insurance.
- The ability to customize your protection up front and make adjustments down the road.