If you read my last blog post then you know that I believe you should have a plan to replace your income in the event something unfortunate happens to you. Everyday I see examples of families that failed to plan and the hardships the surely come with the lost of that income.
Let’s be clear I know you don’t want life insurance. You want your family to be able to carry on and accomplish the dreams and plans you had for them. Maybe by the end of this series you will want life insurance when you realize how much you can use it to make your dreams come true while you are alive. The important thing is that having Life Insurance does not solve all of your planning issues because a large sum a money going to your family will not solve the main challenge facing your family. The main challenge is a clear and effective plan.
Many people just leave money to their families and before long the money is gone and then the financial struggles begin. Why not set a plan in place using your will to say exactly how the money is to be dispersed? Why not have the money go into a fund the preserves the capital but pays a life time income to your surviving family members and passes the principal on to the next generation?
The insurance is only the funding source for the plan. If you have 2 million dollars in life insurance why not have your trustee set up an annuity that pays $100,000.00 per year to your heirs and then passes the payments on to future generations when the pass. Most people don’t do this because they did not know it was an option. Never leave provsions without instructions.
Your gift to your family could be multi generational if you plan well. Can you imagine your two million paying out 5 million over fifty years while preserving the principal? That’s the power of a couple hundred bucks a month in the right hands.
Remember of the plan,Life Insurance is not the Plan, it is the funding source!
Wishing you Wealth Wellness and Wisdom,
Manager of Wealth