Even after you’ve retired comfortably, there’s one more very important financial step you need to prepare for: passing on your accumulated wealth. Life insurance can help you preserve your estate and leave a legacy for your family. Here are some ways to use life insurance in your estate preservation plan.
Estate preservation
The death benefit from a life insurance policy can cover taxes, funeral costs, medical expenses, settlement costs and other bills so that the principal funds in your estate don’t have to be used. Having adequate coverage for these inheritance-reducing expenditures can help preserve the estate.
Tax-free death benefit
Life insurance death benefits paid to beneficiaries are generally income-tax free. There are exceptions, however, so you should go over policy details with a financial professional.
Cash value
Whole life insurance products provide guaranteed cash value accounts that grow, as long as required premiums are paid, according to a formula the insurance company determines.
Selecting an insurance product to make the most of your legacy is ideally done under the guidance of a financial professional. Contact the companies of OneAmerica® today to find a financial professional near you.
NOTES: Provided content is for overview and informational purposes only and is not intended as tax, legal, fiduciary, or investment advice.