When all is said and done, will people be talking positively about how good you were at your job or your business, how kind you were to others, how charitable and engaging you were and how well you provided for your family?
Fortunately, the way that discussion will play out is primarily in your hands, and it is not too late to influence the outcome if you haven’t taken steps to do so already.
You have the ability to take your vocation as professionally or as lackadaisically as possible. You can show a genuine interest in the affairs of friends, neighbours and strangers, or remain distant and detached from their personal affairs. You can give your money and your time to charities, religious and societal issues of importance to you, or you can leave the world’s problems to others.
During this global pandemic, a staggering 25% of Americans reviewed their personal situations and decided to ensure they secure their family’s future by taking out or life insurance protection.
If you have assets that you want to pass on to your family, a charitable institution, or you want to ensure your family is protected should you pass away before your mortgage is paid off, business loans have been covered, or your children or grandchildren have completed their education, a life insurance policy can be a major step in the right direction.
If you already have a policy, please review it so see if the coverage amount or term of the protection is sufficient, as things have likely changed since it was taken out. If you have accumulated substantial assets, you may no longer need the plan or can reduce the coverage amount to reduce the premiums.
Conversely, if you have an asset or property that has a large unrealized capital gain that you wanted to pass on to an heir, a life policy could be taken out for the estimated tax on those gains, so your heir is not forced to sell the property that you wanted to keep in the family.
If you took out “term” coverage when you were younger and not as financially stable as you are today, you might want to replace your policy with a “permanent” plan that guarantees a payout at some time in the future and can also help you tax shelter investment funds as well.
If you are paying for your policy personally, it may be beneficial to transfer the ownership to your corporation who can pay for it with pre-tax dollars. This is not a good strategy to use with disability insurance however, for taxation reasons.
You might also want to consider a “living benefit” plan better known as Critical Illness Protection for yourself, your spouse, children or grandchildren, assuming you can qualify and do not already have a pre-existing condition.
This coverage guarantees that if they should be diagnosed with a life threatening illness such as a heart attack, coronary bi-pass, stroke or cancer for example, they would receive the tax-free lump sum benefit you contracted for. There are no stipulations on how the money must be spent.
Both living and life insurance benefits are important foundations of a sound financial plan and will go a long way to answering the question of how you will be remembered, especially with those you love the most.
For a complimentary confidential Financial Needs Analysis, please contact me at email@example.com