Special needs: Children and grandchildren can be provided life-long financial support with the proceeds of a life insurance policies and a Henson trust.
Leaving a legacy: Sometimes referred to as ‘a gift from the grave’ to family, church, or charity can also serve to reduce the deceased’s final income tax return to zero. Much has been written about charitable giving. Rightfully so, as people who are not concerned about outliving their money often wonder about…Has my life made a difference? With the stroke of a pen they can.
This gift doesn’t have to be grandiose. It can be life insurance that pays for grandchildren’
Replace essential income: For a spouse or family that may be lost if the individual dies. This is certainly the case when a senior has taken a Life Annuity with no guarantees in order to receive the highest monthly payout.
Income replacement is often the main focus for life insurance purchases for young families but the need for seniors is the same. The loss of a major revenue source can be devastating especially if the surviving spouse’s advancing years is also accompanied with increasing medical challenges. In fact, it is prudent when doing needs analysis to consider providing more than the lost income as aging seniors start to require additional funds to hire help for assistance with a myriad of needs.
Pay off any existing debts and financial commitments:
Seniors today will often have a line of credit too, and may choose to use the funds available from it, rather than take out a new loan. Bank owned life insurance on their line of credit typically only covers the “average of balance owing” over a stipulated period of time. This means that if the senior makes a large withdrawal from their personal line of credit that has typically had a minimal if not a zero balance, and then passes away three months later, the amount NOT represented by the “average balance” will NOT be insured.
Another reality for many grandparents today is remortgaging their homes to help finance the cost of raising their grandchildren.
Pay final expenses: This could be income taxes, as well as funeral and other last expenses (e.g. any uninsured loans) to ensure that other assets don’t need to be liquidated to pay the bills.
With advances in medical science and many quality guaranteed issue plans, there are lots of reasons to talk with seniors about their life insurance needs.
Get a free quote calling us at 813-964-7100 or visit our site www.MintcoFinancial.com