How to Use Life Insurance to Leave a Legacy for Your Children or Grandchildren

Life insurance isn’t just about covering final expenses—it can also be a powerful tool for leaving a lasting financial legacy for your children and grandchildren. Whether you want to provide financial security, support educational goals, or pass down generational wealth, life insurance offers a structured way to achieve those objectives.

Ways to Use Life Insurance for Legacy Planning

Providing an Inheritance – Life insurance allows you to leave a tax-free death benefit directly to your beneficiaries, ensuring they receive a financial gift that can be used however they choose.

Funding Education – You can designate a portion of your life insurance payout to help cover college tuition, trade school, or other educational expenses for your children or grandchildren.

Establishing a Trust – If you want more control over how the funds are used, you can set up a trust and name it as the life insurance beneficiary. This ensures that the money is distributed according to your wishes, such as providing for specific needs over time rather than as a lump sum.

Paying Off Debt for Heirs – Your life insurance can help relieve your family of any outstanding debts, such as a mortgage or student loans, so they can move forward financially secure.

Supporting Charitable Giving – Some individuals choose to leave part of their life insurance payout to a charitable organization, creating a philanthropic legacy that benefits future generations.

Choosing the Right Policy for Legacy Planning

Whole Life Insurance – Offers a guaranteed payout and can accumulate cash value over time, making it a strong option for legacy planning.

Term Life Insurance – Provides coverage for a specific period and may be more cost-effective for those seeking a large benefit at a lower cost.

Universal Life Insurance – Provides flexibility in premiums and death benefits, allowing for customized financial planning.

Start Planning Now

Leaving a financial legacy is one of the greatest gifts you can provide for your loved ones. If you’d like help selecting the right policy for your goals, schedule an appointment with us to discuss your options.

About the Author: Mark Roberts

In addition to managing clients’ money and giving investment and diversification advice, Mark offers something that “the other guys” don’t - a unique approach to Retirement Tax Strategies and distribution. Time and time again, Mark meets with new clients who tell him they have a great relationship with their financial advisor but have never been offered information on this kind of approach to securing their financial futures. Mark has taken this feedback to heart and works tirelessly to ensure that his strategies focus on taxes and distribution. Mark started selling insurance for a major insurance company right out of high school to help put himself through college. After graduating with a degree in finance, he dove into estate planning on the financial side to set himself apart from other financial advisors. However, as changes were made to estate tax laws over time, Mark shifted his focus to income tax strategies. Mark’s philosophy is “the blue prints are more important than the wall paper or carpet.” The wall paper and carpet represent products like investments and insurance policies, whereas the blue prints represent the strategies. Once strategies that truly fit the client’s needs are put in place, our focus can shift to providing you with the right products. According to Mark, “It doesn’t matter what carpet we use if the walls are not in the right place.” Our approach to money management is designed to generate the largest alpha (quality) with the lowest standard deviation and beta (risk). By doing this, we help provide clients with the highest return on the lowest risk. Generating income for our retirees is also very important. Because withdrawing money from your portfolio hurts the account rather than helping it, our goal is to design income strategies to harm the portfolio the least making the money last longer.

How to Use Life Insurance to Leave a Legacy for Your Children or Grandchildren

How to Use Life Insurance to Leave a Legacy for Your Children or Grandchildren

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About the Author: Mark Roberts