Create An Inheritance By Buying Life Insurance

You don’t need to save a fortune, to leave an inheritance. With the right life insurance strategy, you can leave an inheritance behind for your loved ones.  However, if you are buying life insurance for inheritance purposes, not every life insurance is ideal for doing so. You need to select the best policy for your budget and needs.

There are some types of life insurance to avoid, especially policies that you will probably outlive. Term life insurance, for example, should never be purchased for inheritance purposes since most people outlive their policy – they reach their term before a certain age. If you already have a term policy, you may be able to convert or exchange your policy into permanent life – many people do so once they retire. Keep in mind that most policies have a deadline for conversion.

You should also avoid increasing premium whole life insurance. So, when you select a policy, make sure you can afford it when you retire or are on a fixed income. If you can’t keep up with the payments, the policy will lapse or cancel, and your loved ones won’t receive your inheritance. Some whole life insurance offer good rates to get you to sign up, but the cost may increase every 1 to 5 years.

If you are purchasing life insurance for inheritance purposes, universal life insurance (UL) guarantees better coverage until later in life. Another type of permanent coverage is whole life. Universal is generally more affordable and offers more flexibility than whole life. Whole life premiums are locked.

With Indexed Universal Life (IUL), you are basically participating in the stock market but aren’t fully tied to it and you are guaranteed against your cash value losing money. Variable Universal Life (VUL), as explained in Investopedia, generally includes sub-accounts working very similar to mutual funds and can also provide exposure to stocks and bonds, which offers the possibility of an increased return in your cash value.

Many times, buying universal life along with term life can be the best approach to covering all your debts and you won’t overpay for life insurance. Term life can cover temporary issues such as a mortgage, income replacement and raising your kids while universal life insurance (GUL) will provide lifetime protection.

So, life insurance is not all about dying. It can help you live a happier retirement and leave a tax-free legacy. Call us to speak with one of our licensed agents today and learn in more detail how you can leave an inheritance with life insurance.






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