Ways to Pass on Wealth to Adult Children and Grandchildren

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Danika Dickson

It’s never too early to start planning inheritance strategies. One of the best ways to pass on wealth is through insurance policies. Permanent insurance is a great way to extend your financial legacy. You worked hard to earn your money and this can help preserve your efforts.

In this blog post, we’ll go over and inheritance technique for adult children and grandchildren that will help them live a more comfortable life in the future.



A tax-free permanent insurance policy may ensure that your financial legacy continues into the future.

Are you thinking about how to pass your money down to your next generation? Have you considered a generational wealth transfer through permanent life insurance?

You can take out a life insurance policy on your adult children. The money earned from the investment growth is not taxed every year and this increases your overall assets.

Becauase you are the owner of the insurance policy, you control money growing inside and can access it during your lifetime if needed.

Your (adult) child

When you buy the plan for your child, they will benefit from having life insurance protection.

You can change who owns the policy by transfering it to someone else without paying taxes. Most people do this at the time of their passing. This is done easily by naming them as a contingent owner on the plan. When a new person (for example, your adult child) owns the policy, they now have access to all the money that is growing as an investment inside the policy.

This money can be used to help buy a home, supplement their retirement, or help fund their child’s education (your grandchildren).



Your Grandchild

You’ve put a foundation in place for your grandchild when you specified them as the beneficiary on the policy. Your grandchild will receive the death benefit money tax-free as the named beneficiary on the policy at the time of your adult child’s death (hopefully much later).


Permanent Insurance Makes Sense For Many Families

If you already have term insurance in place, you may be able to convert a portion to a permanent life insurance policy. If not, we can answer any questions you have about what permanent insurance options are best suited for your goals around inheritance and generational wealth transfers.


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