As we are getting older, we start to have relationship and build family. Then we all come to care more about how your loved ones will go on financially after your death, especially for your dependents. This is where you realize that life insurance can be one of your financial plans for future. Some people are buying life insurance just to pay off their mortgage or debts. Some people are planning to leave a valuable amount for their family. We all know that after the insurer passed away, a lump sum amount will be paid directly to the beneficiaries. However, in some cases, the insurer is worrying:
- How your beneficiaries will manage their finance
- Your beneficiaries are too young or inexperience to handle a big amount of money
- You want to provide a life time support to your beneficiaries
- You prefer your beneficiaries have a control income stream to spend for their life, not at once
By using a gradual inheritance strategy, you can transfer your death benefit to your loved ones gradually, rather than at once. When electing this option, you request that your death benefit will be paid as a series of guaranteed income payment, over a period of time of your choosing.
For this option, you can choose:
- Who your beneficiaries are
- What’s portion of your death benefit will be paid as income payment, what portion will be paid as lump sum amount (if you wish to)
- You can choose a number of years that your death benefit will be paid
If you wish to make any changes or remove this option, you can notice the insurance company anytime to do so. However, your beneficiaries can not make any changes of how the proceeds are paid or remove this option. There will be no extra cost or management fee for choosing this gradual inheritance strategy. You don’t have to have a lawyer to make amendment to the amount or how the amount will be paid.