There are several uses for life insurance, and here is a case study on my own self, living right here in Durham.
I have a 26 year old daughter that I love very much. It is my strong desire to leave her an inheritance. I have no idea how long I’m going to live or how well or how long my investments or retirement funds are going to hold out, so I can’t count on any of those types of funds to be her inheritance. What I CAN count on is a life insurance policy. I have purchased a $ 150,000 15 year term life insurance policy which, assuming I am alive in 15 years, I will convert without having to prove insurability to a permanent life insurance policy.
The premiums (15 year term) will cost me less than $ 30 a month even though I’m already 50 years old. When I’m 65 years old I will convert that policy to a permanent policy for $ 174 a month. So if I die at age 51 or at age 96, my daughter will receive $ 150,000. I don’t have to worry about how the markets are doing, losing principle, investment strength, or any of those variables. I chose the 15 year term and conversion at age 65 because I also purchased a smaller whole life policy to pay for all final expenses and leave a little extra which will be fully paid off at age 65. This will leave me room to pay for the policy that is meant solely as an inheritance for my daughter. Tax free. $ 150,000 isn’t a tremendous amount of money and I know that, but enough money to help her remodel the house she might own, a down payment on her own business, travel money, enhancement of her own retirement funds, whatever she wants.
If you want to leave a legacy for your own children or know someone who might, please call me at 919-943-5577 or e-mail me at nancy.j.williams@mwarep.org. You can also visit my website at healthinsuranceraleighnc.com.
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