Most people want to leave a legacy. Yet most people also have no idea how to go about doing it. One simple way is through a life insurance policy.
Help your immediate family. If you have a family who relies on your income, having a life insurance policy is an absolute must. There are many affordable options. A life insurance can help your family with their daily needs, pay off the mortgage, and fund college education.
Be remembered as the cool aunt (or uncle). If you have nieces and nephews, you can have them as beneficiaries. If they are young, you can create a Trust for them that will be an unexpected surprise. If they are older, you can help fund their trip to Asia, their dream start up or their medical school.
Help a favorite charity. Your legacy may be giving to your favorite organization. With the recent election, and the political environment of various extremes, charities are the most likely organizations to have their funding cut. You can help your cause and advocate for what you believe in. You can either leave a charity as the direct beneficiary or set up a Trust with specific instructions.
Fund a scholarship. A private college tuition is now $70K a year. State colleges can cost $25K a year. You can fund a scholarship fund at your own alma mater, and a $25,000 is usually sufficient to begin. You need to contact your university to ask them for specific instructions, but a Trust is usually the best method of doing so.
Build a playground! Lots of communities are in dire need of a safe place for children to play. Yet funds are usually lacking. You can allocate some money to create a better environment for the next generation. The best way of doing it would be through a Trust – because then the Trustee can check with city council on proposed locations and be flexible on allocating money to the project that is most likely to succeed.
Don’t think that just because you don’t have young ones at home, a life insurance policy is unnecessary. Do something lasting with it and make a good impression.
Disclaimer: This article only offers general information. Each situation is unique. It is always helpful to talk to a specialized attorney, to figure out your various options and ramifications of actions. As every case has subtle differences, please do not use this article for legal advice. Only a signed engagement letter will create an attorney-client relationship.