In a previous post, we saw that Life Insurance has many uses in Estate Planning, beyond just “Breadwinner Replacement.”
Now let’s look at one of the most obvious, yet most overlooked, uses of life insurance:
To Create or Expand One’s Estate
Every parent wants to leave their children better off financially than they were.
However, parents also need to make sure that they use their Estate first and foremost for their own care during their lifetime.
Everyone wants to have an independent and dignified retirement, however, economic uncertainty can threaten our best laid plans.
A long term recession, extended periods of unemployment or underemployment, fluctuations in the stock market, or decreases in the equity in one’s real estate can all adversely affect the amount one has for retirement.
Money that otherwise might be left to children as an Inheritance now must be used to make up for shortfalls in our savings.
The good news: because of Life Insurance, parents no longer have to choose between money they need for retirement, and money they would leave for an Inheritance.
Life Insurance can create an immediate Estate for one’s children, often for pennies on the dollar.
In uncertain economic times, life insurance can be an important resource to ensure our children’s economic well-being.