Would you like to leave more to your kids?
We spend our working years to support our families and save for retirement. Some of us are fortunate enough to save more than we ever need, others just save enough to hopefully make it through the retirement years. Either way, if we could find a way to leave our kids or grandkids more, or something at all, we would all be excited about that possibility.
If you want to leave a legacy to your children, or if you already have substantial wealth and want to leave a bigger legacy, you might want to consider Joint Last to Die Life Insurance. Your situation You have savings or extra income that you do not need for lifestyle purposes. You and your spouse invest the cash in GICs or other taxable investments and earmark these investments for your heirs. You want a financial planning strategy that will increase the funds available for your children when you and your spouse die without risk. An option to consider - Joint Last to Die Life Insurance This financial planning strategy uses your surplus cash to set up a Joint Last to Die Insurance policy. By replacing the taxable investments with a life insurance policy, you will increase the funds available to your heirs when you die and reduce the amount of tax you will pay today and in the future. How does Joint Last to Die Life Insurance work? You acquire a life insurance policy on yours and your spouse’s life and you name your heirs as the beneficiary of the policy. This cash value accumulates on a tax-deferred basis within the policy, increasing the death benefit payable. When you both die, your beneficiary receives the proceeds of the policy; tax free.
By taking advantage of this strategy, you and your spouse have moved personal investment dollars from a tax-exposed environment to a tax-sheltered environment, increasing the amount you give to your heirs when you die.
The bottom line is, you have substantially increased the inheritance your children would receive by using this unique type of insurance as an alternative investment.
Jaymie Bongard Involved in the financial industry since the late 1970s, Jaymie Bongard first worked for the Prudential Assurance Company. In ‘95 he co-founded Independent Financial Concepts Group. As a member of Top of the Table, a group in which less than 1% of financial planning professionals worldwide meet the requirements, he focuses on tax advantaged wealth accumulation & preservation strategies.