Generational Wealth is all about estate planning. Our goal is to leverage our estate to create a revenue stream that can hopefully last for multiple generations after we have passed on. Many interested in this form of estate planning are very interested in leaving a family legacy. Yet are unaware that their plan may be incomplete.
Are You Truly Prepared?
In an ideal world, everyone would be born, would live out their lives, create wealth for their families, and then they would die of old age after their plan has been completed. But considering that we don’t live in such a perfect world, we don’t know when we are going to die. It can be now… or it can be 40 years from now.
This is why you should ensure that your family is protected even if you are no longer there. By adding life insurance to your general wealth plan, you will be continuing your legacy even if you are not physically there to do it yourself. The Need for Life Insurance As mentioned, life and debt are unpredictable – which is why you need to ensure that your generational wealth doesn’t die out along with you. With life insurance, your family gets immediate access to money that will not only cover your final expenses but will also help them move on and keep on building the family wealth. When you have a generational wealth plan, you expect that things can go smoothly. You have a budget, and based on your income, you pretty much know exactly where each cent should go. However, since anything can happen to derail this plan, you need to make sure that plan B is in order. In the event of your death, for instance, your family may have to pay a fair amount for your funeral services, which may put them in a tough financial spot. However, with life insurance, your family should be able to offset this financial burden by using the money that they are given. Planning Starts Early Bear in mind that while life insurance is a helper, the cast will eventually have to come off. In order to protect the generational wealth, you need to teach your children about finance – and then create significant insurance that they can use to continue your legacy.
By putting together life insurance, they will also be able to live off the interest, as well as any money that is protected by a trust. It will act as a safety net so that every step you have previously taken will not be the last for your wealth. It is a form of personal risk management – but one that you certainly have to take. Ideally, you should be able to come up with enough life insurance so that your family will be able to survive even without your income. Moreover, the “thicker” the life insurance is, the more your children will be able to benefit from it. For example, if life insurance covers college as well, they will be able to study until they learn to invest that money themselves. It’s all for the sake of the generational wealth. Final Thoughts Life insurance can cover many holes when it comes to adding generational wealth. Plus, if the sum is quite significant, it may even give your family the help that they need. If you do careful legacy planning, your legacy can easily stretch all the way to your grandkids.