Inheritance & Life Insurance

If someone in your family has passed away recently you may have received an inheritance. While it may be tempting to spend the money you’ve just received, you owe it to yourself to take some time and consider how you might invest your inheritance into something that can grow in capital over time. 

One thing to know is that you may not need to pay taxes based on how much of an inheritance you receive. For example, if you receive less than $2 million in inheritance, you do not need to pay state taxes. Even if you go above that set amount, you don’t need to pay any federal taxes unless you receive over $10 million. 

With that in mind, life insurance is one way in which you can grow your inheritance regardless of whether you receive that inheritance tax-free or not. For example, if you are left with $500,000 after the death of a relative, you can invest that money into a $2 million, 30-year term policy based on your age and health and potentially poise your children to receive an inheritance more than twice the size of the one you received. It’s also very likely that you will be able to save a good portion of your inheritance funds depending on your policy, so not only are you reinvesting that money into your children & family’s future, but you are also setting some of that money aside for yourself to use as you please. For example, if you take out a 20-year, $2 million term policy with Preferred Plus status with a company that we can’t name for compliance reasons, you’ll spend about $36,000 over the span of twenty years on your monthly payments. That still leaves you, the inheritor, with over $450,000 to reinvest, spend, or save as you see fit while you’ll be leaving more than twice the money to your family in the event of untimely death or terminal illness.  

If you want to make the smart choice with your inheritance funds and build a policy that encompasses your needs for your family, we’ll be ready to help you out. To get started with us, contact us at or call us at (425)-246-4222 to schedule an appointment or talk to a life insurance agent today