We understand how much work you’ve put into growing your wealth, and we’re here to make sure it smoothly passes on to the next generation. Secure the future you’ve imagined for the next generation – let SmartWealth Financial Incorporated guide you through efficient wealth transfer using life insurance.
Discover tax-efficient wealth transfer strategies with cash-value life insurance. This unique financial tool helps you grow and pass on assets to your loved ones and charitable causes tax-free.
One effective strategy involves moving taxable assets into tax-preferred cash-value life insurance policies to create generational wealth.
Benefits of Wealth Transfer Using Life Insurance:
At SmartWealth, we’re proud to offer these advantages with well-planned wealth transfer life insurance solutions that align with your financial goals for yourself and your family’s next generation.
Talk to one of our advisors to learn how this strategy can benefit you.
Using a life insurance policy for wealth transfer provides a unique advantage by transforming a potentially taxable asset class at death into an asset class that’s both tax-advantaged while you’re alive, and when you pass on.
Explore this option as an alternative to traditional investments and asset classes designed to leave less to your heirs.
Assets in a life insurance policy grow tax-deferred, can be accessed tax-efficiently, and are paid out tax-free at death.
With life insurance, you can:
The death benefits passed on to your beneficiaries are tax-free, creditor-proof, and bypass any probate or estate fees, allowing for a larger after-tax inheritance.
Assets like CDs, stocks, bonds, and mutual funds in registered or non-registered investments often generate taxable earnings that are taxed yearly or upon withdrawal.
A cash value life insurance policy growing tax-deferred can create wealth that outpaces registered and non-registered investments that are either taxable every year or at death.
Secure a smooth wealth transfer and protect your family’s financial future. Choose SmartWealth Financial Incorporated for comprehensive life insurance solutions.
Ideal candidates for wealth transfer using life insurance include those who:
Determine how much death benefit you need (your accountant can help you with this), to finance capital gains taxes at death if you need to preserve other asset classes like a business or real estate, or decide how much wealth or taxable investments you want to transfer to life insurance on a monthly or annual basis.
Implement a well-planned permanent life insurance policy for yourself, your children, or your grandchildren, depositing funds that exceed the amount required to fund the insurance cost to build tax-sheltered cash values and magnify your wealth through compounding asset growth.
If you qualify for life insurance, you can name your children, grandchildren, or a trust as your beneficiary. If you can't, you can designate your children or grandchildren as the life-insured (generational wealth transfer) and establish a trust to finance the life insurance even after your death.
The accumulated death benefit pays out tax-free at your death to whoever the beneficiary is if you are the life insured. If the life insured(s) are your children or grandchildren, the policy ownership gets transferred to your children when you die, who then become the primary policy owner(s). Your grandchildren can be named the contingent policy owners at the death of your children if the grandchildren are the life-insureds.
Deposits can be made in 10, 20, or financed continuously for the rest of the insured's life. If you are the life insured, no contributions are required once the policy pays out the death benefit, even if the policy isn't yet considered "paid-up." If your children or grandchildren are the life insureds, a trust can be set up to finance the policy continuously after you pass away so they need not finance the policy on their own.
A generational wealth transfer policy becomes a vital part of the next generation's financial planning, providing liquidity at times of need or to finance major purchases or investments throughout their life and still have more than enough wealth to leave to the next generation. Empowering you to leave multi-generational wealth.
As your reliable ally, we offer trustworthy solutions for seamless wealth transfer planning.
Wealth transfer using life insurance has many advantages. It not only empowers you to leave more wealth to your heirs but also provides you and your loved ones with financial security and flexibility.
You can use any permanent insurance, with participating whole life and universal life being the most common. Both allow you to grow cash value tax-sheltered, deferring tax until withdrawal. Universal life offers flexibility in deposit amounts and investments, while participating whole life has set premiums and cash value growth structures.
Take a proactive step today, and let SmartWealth financial advisors guide you through the process of tax-efficient
wealth transfer using life insurance.
Secure higher inheritance for your children and grandchildren. If you’re considering wealth transfer using life insurance as your
preferred strategy, now is a great time to learn how this strategy can work for you and your next generation.
