There typically comes a time as people get older when they start thinking about future generations and the legacy they will leave behind. Often times after strategic planning people have more than enough in retirement and get to a point where they begin contemplating how they can pass on their wealth in efficient ways. Whether the amount is a little or a lot, leveraging a guaranteed death benefit for a smaller premium becomes a viable option.
Along with careful planning, some people like to set aside funds that will pass along to children and grandchildren. Death benefit proceeds are passed along to whomever the policy owner designates as the primary beneficiary(s), and generally accomplishes this in a tax-free manner. Another advantage to transferring wealth through life insurance is simplicity, the beneficiary will receive the death benefit proceeds directly from the life insurance company which typically takes a week after the insurance company receives the insured’s death certificate.