Life insurance can be an important tool to protect your income and savings, but did you know you can also use it to fund your legacy goals? Whether you want to provide an inheritance for loved ones or gifts to charity, permanent insurance could offer you flexibility and certainty that you'll reach your goals.
The amount and type of permanent insurance you choose will depend on your goals and situation.
Goal: Leave specific financial assets
If you want to leave a savings account, stock or other financial assets to your heirs or charity, typically the best strategy is to continue to own these assets throughout your lifetime. This allows you to benefit from any income they generate and have the flexibility of accessing them if you need to.
If you have a gap between what you have saved and the amount you'd like to leave behind, life insurance can provide the funds to fill that gap. It can also preserve your assets in the event of your illness or other significant, unexpected costs, helping ensure you can leave behind the amount you intended.
Goal: Have greater flexibility when transferring assets
Some assets (for example: a business, real estate or farmland) can't be easily divided among heirs or may require ongoing maintenance costs. In these situations, permanent life insurance can provide you the flexibility to:
Goal: Provide ongoing care for a loved one
If you're the primary caregiver for someone with special needs, life insurance can help ensure your loved one continues to be well-cared for after you pass on. Make sure you work with a qualified attorney to explore opportunities to create a trust or trusts to manage the assets on your loved one's behalf.
There are many factors to consider when using life insurance to fund your legacy goals. Your Edward Jones financial advisor can look at your entire financial picture and work with your attorney and tax professional to help you decide if this approach is right for you.
Together, you can talk through the answers to these questions:
Your financial advisor can provide a quote so you can have the information you need to make the best decision. To get started, contact an Edward Jones financial advisor today.
Edward Jones, its employees and financial advisors are not estate planners and cannot provide tax or legal advice. You should consult your estate-planning attorney or qualified tax advisor regarding your situation.
Edward Jones operates as an insurance producer in California, New Mexico, and Massachusetts through the following subsidiaries, respectively: Edward Jones Insurance Agency of California, L.L.C., Edward Jones Insurance Agency of New Mexico, L.L.C., and Edward Jones Insurance Agency of Massachusetts, L.L.C.