As this is family wellness and legacy month, let’s talk about life insurance. Life insurance is a love letter to help your loved ones. Life insurance says “Honey when I walk out, cash will walk in tax-free.“
It is common knowledge that life insurance is often used to pay for funeral and end of life medical costs. In 2019, Connecticut’s average cost for a funeral was just under $27,500. Proceeds come at a time when the family is grieving. This is not the time when anyone wants to worry about where the money will come from. Life insurance can be used to pay off a mortgage or car loan after you’re gone. It may also be used for education and weddings.
If passing on assets to children and grandchildren is important to you, life insurance can leave lumps of tax-free money in an explosion of value! If taxes are your hot button, life insurance can pass the money on to loved ones without being subject to estate, inheritance, or income taxes. Life insurance can be used to pay any tax liability after you’re gone. If you are charitably inclined, life insurance can leave a substantial sum to the charity of your choice at a modest tax-deductible premium.
Are you interested in building a legacy with life insurance? Cowen Tax Advisory Group can help you find the right policy or incorporate an existing policy into your estate plan. Call (860) 676-1100 or request a free consultation appointment online.
Roger Cowen
cowentaxgroup@gmail.com
President & Founder, Cowen Tax Advisory Group
