Leaving a Legacy

Your great-great-grandparents, for instance, or a famous person who died centuries before you were born. Leaving behind a legacy means making an impact that will last long after you die. It could be financial, with something you create, or through the people, you touch while alive.

• Term life insurance is the most common type of life insurance. It is a policy that provides coverage for a certain amount of time or term. If you die during the term of the policy, your beneficiaries will receive the death benefit. If you do not die during the term, the policy expires, and you will not receive anything back.
• Whole life insurance is a type of permanent life insurance. It provides coverage for your entire life, as long as premiums are paid. The death benefit will be paid to your beneficiaries regardless when you die. Whole life insurance policies also have a cash value that accumulates over time.
• Universal life insurance is another type of permanent life insurance. It is very similar to whole life insurance, but the premiums are flexible and can be changed based on your needs. The death benefit and cash value are also adjustable.
• Final expense insurance is a type of permanent life insurance designed to cover funeral expenses. The policy has a fixed death benefit, and the premiums are usually low because the policy is only intended to cover a specific need.

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Life insurance is one way to help you leave a legacy to your family and make sure their financial future is protected. With life insurance in place, your beneficiaries will receive a lump sum of money when you die. Typically, your beneficiaries won’t have to pay any taxes on the money they receive from your life insurance policy. That’s good news, because they’ll be able to enjoy the full value of the payment.

Here’s another way a life insurance payment can lessen the impact taxes may have on your family: A portion of the death benefit from a life insurance policy can be used to pay any taxes that may be due on your estate. That way, you know you’ll be passing on the full value of your estate to your heirs.

Of course, you'll want to speak to your tax advisor about your personal situation before making any decisions that may impact your or your family's tax responsibility.

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There’s no one right way to create a legacy, but life insurance can help. Permanent insurance can be used to strengthen any plans you already have in place or be the foundation of your legacy. Just remember, the most important part of any legacy plan is knowing that it will remain intact for future generations, no matter what.