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4 Ways To Protect and Increase Generational Wealth

Life insurance can potentially protect and even increase generational wealth in ways many people don't know about. Have you taken a look at the various options lately?

While buying a term policy and investing the difference might be a good idea for younger people with few assets, your needs and priorities may shift as you grow older.

Learn how higher-net-worth individuals might use life insurance to their advantage.

Here are a few options some people choose to pursue:

Using living benefits to protect your wealth from long-term care costs.

The monthly costs of assisted living can be exorbitant, especially if you need advanced care, want a private room in a top-notch facility, or live in a high-cost area.

A permanent life insurance policy with a long-term care rider can help cover these expenses if they come up. If they don't, you'll potentially be able to leave the policy's full death benefit to your heirs.

Creating a Safeguard Trust can also save your assets from LTC

This kind of trust is not very well known. As a matter of fact, out of all the attorneys in the United States, only 750 know how to set up one of these. The Safeguard Trust will save your assets from not only lawsuits but also keeps you from going broke in a nursing home.

Creating a life insurance trust to cut estate taxes.

To prevent life insurance proceeds from being classified as part of your taxable estate, you might look into creating a trust that would own and benefit from an insurance policy on your life. Your annual gifts to the trust can pay the policy's premiums.

Using life insurance to benefit your favorite charity.

Instead of making small, annual cash gifts, it may be possible to redirect that money into a permanent life insurance policy and name your favorite nonprofit as the beneficiary. This strategy leverages smaller sums to generate a larger donation.

If you'd like to know more about how these approaches might benefit you, don't hesitate to reach out. We can explain these options and others that could help you preserve your legacy.

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