Leave a Lasting Legacy
Use Your Life Insurance to Help
You’ve worked hard your whole life to create a legacy you are proud of. But your legacy doesn’t have to stop when you pass on. There are ways for your legacy to live on and inspire others. While there’s more than one way to ensure you’re remembered, using your life insurance policy is one avenue to consider.
How Life Insurance Can Help
If you have a life insurance policy at the time of your passing, your beneficiaries will receive a lump sum. These funds aren’t taxed, and so whatever amount your policy is for, that’s how much your beneficiaries will receive.
Once your beneficiaries have these funds, they can use them for whatever they want, whether that’s paying for the cost of a service, paying your mortgage, paying off estate taxes or anything else they need it for.
Most of the time, children, spouses or other family members are the beneficiary, but this isn’t always the case. You have the power to decide who benefits from your life insurance policy and your legacy.
Who can you name as your beneficiary?
There are no restrictions on who you can name as a beneficiary. And it doesn’t have to be a person. You can also list any entity as your beneficiary. Here are a few options to consider when deciding who to gift your life insurance policy to.
Family, Friends, or Loved Ones
One of the most common beneficiaries listed on life insurance policies is family or loved ones. This is a great option. Leaving these funds to your family or friends could be the gift you’ve always wanted to give but never had the financial opportunity before.
Charity or Local Cause
This could be your opportunity to give a financial gift to a charity of your choosing or a cause you’re passionate about. The funds from your life insurance policy can go to an organization with a cause you believe in.
Whether that cause is something like backing a political candidate or helping build a city park, the funds from your policy could make a big impact on the cause of your choice.
You can set up a college fund for a family member or loved one, but you can also have the funds from your life insurance policy turned into a college scholarship. Maybe you want to help provide an education for someone, or you want to encourage people to follow a course of education you’re passionate about. Leaving your life insurance policy as a part of a college scholarship will make a lasting impact on those who receive the funds.
Whatever cause or person you decide to name as your life insurance beneficiary, this generosity will not be forgotten.
If you’re not sure who is currently named as your beneficiary, or you’d like to look into options for changing your beneficiary, contact the office.
The cost and availability of life insurance depend on factors such as age, health, and the type and amount of insurance purchased. Before implementing a strategy involving life insurance, it would be prudent to make sure that you are insurable by having the policy approved. As with most financial decisions, there are expenses associated with the purchase of life insurance. Policies commonly have mortality and expense charges. In addition, if a policy is surrendered prematurely, there may be surrender charges and income tax implications.