Generally, life insurance is taken out as a way to help your heirs deal with your final expenses after you pass away. However, as the Pete Webb Agency serving Fredericksburg, VA explains, you can and should carry enough life insurance to help your heirs carry on beyond paying your final expenses if you are still the primary breadwinner. Your surviving spouse will have some money to replace your lost income. Your surviving children will have money for their education and other expenses.
What happens when you have passed into your senior years, and your children have grown up and become adults. As it turns out, a life insurance policy can be used as part of their inheritance. Proceeds from life insurance are generally not taxable so long as they are paid off immediately after your death. They are also not subject to the probate process, so your heirs can get the money sooner than other parts of your estate.
Many people like to use life insurance to pass on an inheritance to their heirs because they have less money in savings and need their savings to supplement their social security income. Others have substantial savings but prefer to have a more comfortable retirement, say engaging in travel and other fun activities. Still, others are obliged to spend their savings on healthcare, treating the many ailments to which age is prone.
Whatever your reasons, you should consider having a substantial life insurance policy as part of your inheritance strategy. For more questions about all aspects of life insurance, feel free to contact the Pete Webb Agency serving Fredericksburg, VA.