Secure Your Legacy Effortlessly With Insurance Succession Magic
Real-World Examples and Costs
Consider a scenario where a family-owned business is passed down to the next generation. Without proper planning, the heirs might face significant estate taxes, forcing them to sell parts of the business to cover these costs. By incorporating a life insurance policy into the succession plan, the proceeds can be used to pay taxes, ensuring the business remains intact and operational.
The cost of life insurance varies based on factors such as age, health, and the type of policy. For instance, a healthy 40-year-old might pay around $50 per month for a $500,000 term life insurance policy2. Whole life insurance, while more expensive, offers the added benefit of cash value accumulation, which can be a valuable asset in estate planning.