Are You Leaving a Legacy for Your Family? You Can With Life Insurance

Enjoying Retirement

Ever think about how life insurance can provide a future for your family? Imagine how easy things would be if you could pick when you passed away. You could plan accordingly and have your financial life in order, leaving your loved ones with minimal after death issues to deal with. Consider George Steinbrenner, former owner of the New York Yankees. Although he and his family would probably prefer that he still be alive today, by passing in 2010, his family avoided having to pay estate taxes. Given that the Yankees were worth 1.1 billion dollars at the time, depending on which year’s estate tax you chose to use, 2009 versus 2011, his heirs avoided having to pay between half a billion to 600 million dollars in estate tax. As with everything, timing is everything.

The average American does not have to worry about estate taxes. Using 2015 IRS numbers, few individuals and/or couples will have an estate worth more than 5.43 million or 11 million dollars respectively when they pass. Given this reality, how can you help your family elevate itself to levels of prosperity that you haven’t achieved yet? One solution may be through life insurance.

Depending on how much you have or are saving for retirement, the manner in which you will live out your golden years has already been determined. However, with minimal investment by you now, how your family and their family live their lives in the future could be dramatically changed, for the better. As an example, with one of our carriers, a 50 year old male, rated standard non-smoker could purchase a permanent life insurance policy worth $81,607 for $100 a month. Although $81,607 is a nice sum of money, I realize that it is not life altering. However, what that money would allow you to do is life altering.

Assuming the beneficiary of the man in the example is 50 years old, took that money, put it into a new permanent policy of his own and committed to the same $100 a month, at a standard non-smoker rating, his life insurance policy would be worth $450,620. Leaving nearly half a million dollars tax-free to his beneficiary would be life altering. As an alternative, if the beneficiary decided to invest the $81,607 and got a reasonable 5% average rate of return over 15 years, his account value would be $169,655.03 (Through a Roth IRA, that value would be tax- free). If the now 65 year old man chose to get a life insurance policy for $100 a month with an initial dump in of the original $81,607, he would have a life insurance policy worth $214,769 and $88,048.03 left over to spend in retirement.

The Steinbrenner children weren’t going to be hurting for money whether or not their father left them an inheritance or not. What about your spouse, children or grandchildren? Although it is possible for any one person to achieve financial riches, the way to best ensure the sustenance of your bloodline is to transfer accumulated wealth from one generation to the next. If you don’t have the wealth, you can create that legacy, through life insurance.

About the author: Anthony Veloso has been in the life insurance business for over 2 years. He enjoys coaching football, playing outside with his dog, and taking day trips with his wife and newly born daughter. Anthony is a strong supporter of Orphanages and Battered Woman’s shelters. He would love to put his experience to work for your family to ensure that you have the right life insurance policy. You can contact Anthony at 1-800-654-1953 or AVeloso@Pivot.com.