At the end of 2014, 45% of adults in the US had no life insurance in place. Many times the response to this stat is that young people aren’t getting married as young (or at all) and not having kids (or not as many). While the view is valid in some cases that if you don’t necessarily have people counting on you and your income, there is not a need for life insurance. But even if you are single with no dependents, you may have a charitable organization you give money to on a monthly or yearly basis. What if you took some of those funds and used them to pay premiums on a life insurance policy and named the charity as the beneficiary of the policy? Now you have created an opportunity to leave a lasting legacy by using a relatively small amount of premium dollars to create a large death benefit for your favorite charitable organization.
The same idea applies to family members/heirs. There are specific life insurance products designed to stay in force for your entire life, helping people to create a game plan way in advance to transfer wealth to children and grandchildren. And life insurance proceeds are paid out tax free to the beneficiary, so no worries of Uncle Sam sticking his hand in the cookie jar and taking a huge piece of the pie.
Cash value life insurance can be used to set up another income stream in retirement and the huge appeal is that gains made within these policies grow tax deferred, funds can be taken out tax free (if plan is set up properly), and policy performance is not attached to the ups and downs of the stock markets.
Everyone’s always looking for the best way to leverage their savings, give life insurance a second look.