How the rich keep their money in the family using secret life insurance schemes

Life insurance

A large financial challenge for ordinary people like you and me: how to leave a financial legacy behind. Well, there is a scheme out there that offers huge advantages others simply can't match: life insurance. In this revealing article you'll find out some of the tricks that the wealthiest people on the planet use...Their secret life insurance methods can work for you as well!

The IRS and inheritance

First off: Get the IRS off your back! Many people incur taxes when they pass away. You may have money in an IRA or 401(k) plan that has never ever been taxed before. The IRS doesn never forget money, taxes still have to be paid. The question is: Do you want your family to keep the full value of the inheritance you leave? If the answer to this question is yes (and it will most probably be yes, or you wouldn't be reading this article) then you can use life insurance to address this. First step: Consult a qualified tax professional. An accountant can help you estimate your taxes due upon death. Once the amount is determined you should roll out a life insurance policy of sufficient size to pay off the tax owed to the IRS. When you die the tax-office will take its share of your money. The life insurance proceeds paid to your beneficiaries will replenish the size of the inheritance. Policy costs are typically a tiny fraction of the face value, making them extremely cost efficient.

Always safe for your retirement

Also, let the insurance company fund your inheritance. Let's assume you're careful enough to save for your retirement and have a million dollar apple. Well done! If you want to leave money to family a new challenge arises...if you want to give them half a million in total you will need to set that money aside, leaving just half of the total for your own retirement. Consider using life insurance to give your family that half million. If you are reasonably healthy for your age it will cost much less than putting that cash aside in a savings account. If the cost is 100,000 dollar for it you get to live on the remaining 900k. Your retirement lifestyle will then be a lot better and your family still inherits the same amount of cash!

Ten-pay policy life insurance

Life insurance secret 3: Leaving a larger inheritance with no extra cost
If you've already set aside money to leave behind for your loved-ones, why don't you increase it without additional cost? Get estimates on a ten-pay policy. That's a form of life insurance where you pay once a year for ten years and then own the insurance policy outright. Ask for estimates for a policy where the yearly premium would be one tenth of the amount you already set aside. If you set aside 10,000 dollars for your family, ask about a  one-thousand per year policy. You multiply the size of your family's inheritance without spending one extra penny.

Consult your accountant or
financial adviser to find out what is
the best life insurance deal

Any of these three ideas can be used with relatively small amounts of money. Consult your tax professional or financial adviser before buying any financial instrument / product including life insurance policies. Choose the cheapest, lifetime-coverage insurance policy you can get from a reputable insurer. Usually a policy type called Guaranteed No-Lapse Universal Life. Avoid using Whole Life because it's in most instances too expensive for these purposes. Choose a local independent life insurance agent and consult your financial professional or financial adviser to get to know which of these ideas can help you build an unforgettable financial legacy!