Life Insurance for Building Generational Wealth
January 16, 2025
Generational wealth can set up multiple generations of your family for success and allow them to carry on the legacy you’ve built. Giving future family members opportunities to grow and thrive speaks to your passion for nurturing their long-term success and happiness.
A robust life insurance policy can provide long-term financial security and boundless opportunities for future generations. Our team at 1891 Financial Life encourages you to regard life insurance as the cornerstone of your family’s financial legacy planning. Here’s why.
Understanding the Role of Life Insurance in Wealth Building
A well-structured life insurance policy creates a rather impressive safety net for your family members. Even if they face unforeseen circumstances following your death, the life insurance policy can offer the security and stability necessary to protect and preserve family wealth.
Cash-value life insurance policies offer both a death benefit and a growing cash value. Over time, the value of your whole life insurance policy will accumulate wealth, which can be accessed by future generations — a gift they can rely on as they pursue their dreams and unleash their potential.
Strategies for Using Life Insurance To Build Generational Wealth
It’s crucial to work with a financial advisor specializing in life insurance and estate planning who can help you understand and implement all the strategies available for building generational wealth. Minimizing tax burdens and ensuring the smooth transfer of wealth will go a long way toward giving your beneficiaries peace of mind as they prepare to inherit the assets you’ve thoughtfully bestowed upon them.
Some clients find it worthwhile to establish trusts, which make it possible for family wealth to be distributed according to specific guidelines set forth by the policyholder. The ability to customize a trust gives the policyholder added reassurance in knowing that their values, goals, and intentions will be upheld in the months, years, and decades to come.
Key Benefits of Integrating Life Insurance Into Wealth Plans
Death benefits on a life insurance policy are generally income tax-free. Not having to pay income taxes upon receipt of the funds paves the way for sustained prosperity.
Here’s more good news for your beneficiaries: As the whole life insurance policy accumulates wealth, it does so on a tax-deferred basis. The cash value associated with the policy promotes the growth of the investment plus financial flexibility. A great-grandchild, for example, could explore a borrowing option against the cash value without interrupting the policy’s benefits. That great-grandchild could access the funds they need without compromising the long-term value of the policy, which further adds to its appeal.
Begin Building Generational Wealth Today
If you’ve ever wondered if you can build generational wealth with life insurance, the answer is a resounding yes, and we want to emphasize that it’s never too late to get started! The life insurance policy we can customize for you can provide immediate and long-term financial security.
Our team at 1891 Financial Life would be happy to discuss life insurance policies in more detail. Together, we can review policy options, tailor your chosen policy accordingly, and answer any questions you may have. Contact us today to start building generational wealth through a life insurance policy. It will surely be one of the most generous, selfless ways to express your love and concern for those who will come after you.
About 1891 Financial Life
Our culture is about looking out — for you, for others, for family, for the community. That is how we go “Beyond Life Insurance.”
At 1891 Financial Life, we don’t just sell policies; we offer possibilities. We pride ourselves on giving back to the communities that we serve by providing quality and comprehensive insurance solutions. We are a not-for-profit life insurance Society, which means the sales from these financial service products help fund member benefits along with social, educational, and volunteer programs designed to respond to community needs. In 2023, 1891 Financial Life was listed by Forbes as one of "The World's Best Life Insurance Companies."
Our portfolio is extensive, ranging from various life insurance policies to our annuities to support your financial needs no matter what stage of life you’re in.