Creating generational wealth through tax-free permanent life insurance.
Clients often tell us that one of their goals is to create generational wealth. These clients already have excess wealth that they intend to pass on to the next two generations. A challenge that often arises when passing wealth to your children and grandchildren is that all non-registered investment growth is eroded by taxation. Thankfully, there is a solution. Tax-free permanent life insurance. Our financial advisors can assist you in setting up a tax-free permanent life insurance policy. This will ensure your financial legacy extends to your grandchildren.
By taking out a life insurance policy on your adult children, you can shield yourself from annual taxation. This in turn can increase your overall wealth. As the owner, you control the money growing inside the plan. You can access it any time during your lifetime if needed.
Benefits for your Child:
Insuring your child with this plan ensures they have a valuable asset right away: life insurance protection. The policy can be transferred to them at any time, tax-free, by naming them as the contingent owner of the life insurance plan. As the new owner, they are able to access all of the money that is growing within the policy. This money can be used to help them purchase a home, supplement their retirement, or help fund their child’s schooling.
Benefits for your Grandchild:
When you name your grandchild as the beneficiary of the policy, you have helped create a financial foundation that they can build on. In the unfortunate event of your adult child’s death, the grandchild named as the beneficiary will receive the death benefit proceeds tax-free.
It can be difficult to discuss death and transferring financial resources. However, it is necessary to have a plan in place that protects your wealth and helps provide for your loved ones. You’ve worked hard to develop your wealth. Let our team at Evergreen Wealth Advisory help you ensure that your financial legacy extends to the next generation.
Contact our experienced financial advisors today to discuss your unique financial situation. We can help get you set up with the right life insurance policy for you.