Our life will get into a new chapter if you start to have a child. From that moment, you can’t stop thinking about your child’s future and how to give the best of you to your children. Most of parents will immediately think of leaving their house to their children. However, leaving a property can be a problematic to your children because whoever is receiving the property may have to pay capital gains on the fair market value of the property. That’s why life insurance is design so you can leave a tax-free inheritance for your children. To make sure your children will have a decent life. A whole life insurance can offer:
- Create an inheritance: the tax-free death benefit creates an instant legacy
- Preserve an inheritance: your beneficiaries can use the proceeds to cover final expense, estate taxes and fees, keeping their inheritance intact
- Build wealth you can access: use the cash value to supplement your retirement income, help pay for your children’s education or financial needs, or use the policy as collateral for a loan from your financial institution
- Provide for your loved ones: the death benefit can be used to replace for your income to provide for those who depend on you.
- Gradual inheritance: when you pass away, the proceeds of your life insurance and savings accounts are traditionally paid to your beneficiaries as a lump sum. You may prefer your beneficiaries to receive their inheritance more gradually. This is a good option if you are worried about how your spouse and children will manage after you have passed away or concern about passing a large amount of money to a beneficiary who is young and in-experienced at managing money.