Life Insurance: Strategies to keep the Money in your family

One of the many financial challenges people face is how to leave a financial legacy. One tool offers advantages others cannot match - life insurance. Here are some of the ways wealthy people use it. Their methods can work for you as well.

Get the IRS off your back

Many people incur taxes when they die. You might have money in an IRA or 401(k) plan that has never been taxed, for example. The IRS has not forgotten that money. Taxes must still be paid on it. The question to ask is: Do you want your family to keep the full value of the inheritance you leave?
You can use life insurance to address this problem. The first step is to consult a qualified tax professional like a CPA. An accountant can help you estimate your taxes due upon death. Once the amount is determined you can take out a life insurance policy of sufficient size to pay off the tax burden. When you pass away the IRS will take its share of your money. The life insurance proceeds paid to your beneficiaries will replenish the size of the inheritance. Policy costs are typically a tiny fraction of the face value, making them very cost efficient.

Let the insurance company fund the inheritance

Assume you are careful to save for your retirement and have a $1,000,000 nest egg. Congratulations! You did very well. If you want to leave money to family you have a new challenge. If you want to give them $500,000 in total you'll need to set that money aside, leaving just half of your nest egg for your own retirement needs. That's sure to put a new spin on how you plan your retirement life.
Consider using life insurance to give your family the $500,000. If you are reasonably healthy for your age it will cost much less than putting that cash aside in a savings account. If the cost is $100,000 for it you get to live on the remaining $900,000. Your retirement lifestyle will be much better and your family still inherits the same amount of money.

Leave a bigger inheritance with no extra cost

If you've already set aside money to leave to your family, why not increase it without additional cost? Get estimates on a ten-pay policy. That's a form of life insurance where you pay once a year for ten years and then own the policy outright. Ask for estimates for a policy where the annual premium would be one tenth of the amount you already set aside. If you set aside $10,000 for your family, ask about a $1,000-per-year policy. You'll multiply the size of your family's inheritance without spending an extra cent.

Any of these three ideas can be used with modest amounts of money. Consult your financial advisor before buying any financial instrument. Choose a local independent life insurance agent  to learn which of these ideas can help you build your financial legacy.

Consult Mintco Financial  Independent Advisors :
 813-964-7100
716-565-1300
Email:anecamara@mintcofinancial.com
www.MintcoFinancial.com

Get a free quote of Life Insurance:

http://www.mintcofinancial.com/life-insurance-quote.asp