Looking to Fund a Legacy? Try Life Insurance
Edward Jones - Chad Choate, AAMS
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May 17, 2023
Florida - Sarasota, Bradenton & Charlotte Counties
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When you think of life insurance, you probably see it as a way to help replace your income and protect your savings should something happen to you. But did you know that it can also help you fund a legacy?
Investment Strategist Rachel Meier explains how this unique strategy works:
Q. Who might want to consider doing this?
A. Life insurance can help if you intend to leave a specific dollar amount to your heirs or a charity. It can also be an effective strategy if you own a business, real estate, farmland or other assets that can’t be divided easily. In addition, this strategy is a tax-efficient way to transfer wealth.
The amount and type of insurance you choose depend on your personal goals and situation. But since this strategy is to remain in place for your lifetime, you will need to purchase permanent life insurance, which may also build up cash value. While a term policy can be more affordable, it covers only a specific time frame. When the term is up or you stop paying the premium, the coverage ends.
Q. How might this strategy work?
A. Let’s say you have identified a specific asset you want your loved ones or a charity to receive – such as a savings account, stock or other financial assets – but you also need to benefit from that asset during your lifetime. Instead of giving the asset outright, you can purchase a permanent life insurance policy to cover the specific amount you wish to leave. This can help ensure the amount you desire is left at your passing versus potentially limiting your spending during your lifetime.
Life insurance can also help fill any gaps you might have between what you’ve saved and what you’d like to leave behind. It can provide you flexibility in the event of your illness or other significant, unexpected costs, by allowing you to access your savings and still help ensure you can leave your desired legacy through the life insurance benefit.
Q. What about assets that can’t be divided easily? How can life insurance help in those situations?
A. If you own a business, real estate, farmland or another large asset, it might not be possible to simply divide this among your heirs. With permanent life insurance, you can leave the specific asset to one beneficiary while leaving an equivalent value in insurance proceeds to others. Also, with this type of inheritance, your heirs might end up paying ongoing maintenance costs, such as taxes, insurance or operating expenses. Life insurance can provide your heirs with the money to pay these costs, or even liquidity to transition a business.
Q. What other legacy uses would you recommend for life insurance?
A. If you’re the primary caregiver for someone with special needs, life insurance can help ensure your loved one continues to be cared for after you pass. Edward Jones recommends that you work with a qualified attorney who can help you create a trust or other plans to manage the assets on your loved one’s behalf.
Q. What else should viewers be aware of before they use this strategy?
A. You’ll need to decide:
• Which type of permanent policy (if any) is right for you
• How much life insurance you need and whether you can afford it
• If you’re insurable
• How much flexibility you need
Your Edward Jones financial advisor can look at your entire financial picture and then work with your attorney and tax professional to help you decide if this approach is right for you. He or she can also provide a quote so you can have the information you need to make the best decision.
Important Information:
Edward Jones, its employees and financial advisors are not estate planners and cannot provide tax or legal advice. You should consult your estate-planning attorney or qualified tax advisor regarding your situation.
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Local Services By This Author
Edward Jones - Chad Choate, AAMS
Investments 828 3rd Ave. W., Bradenton, Florida, 34205Hello, I'm Chad Choate a dedicated financial advisor in Bradenton, FL, I began my career with Edward Jones in 2017. As a financial advisor, I want to find out what's important to you and help you build personalized strategies to achieve your goals. As a lifelong Manatee County resident, I graduated from the University of South Florida and was a teacher in Manatee County before joining Edward Jones. My driving force is to change people's lives in a positive way, and what better place than my home to do that. Whether you're planning for retirement, saving for college for children or grandchildren or just trying to protect the financial future of the ones you care for the most, we can work together to develop specific strategies to help you achieve your goals. We will also monitor your progress to help make sure you stay on track or determine if any adjustments need to be made. Throughout it all, we're dedicated to providing you with top-notch client service. But we're not alone. Thousands of people and advanced technology support from our office can help ensure you receive the most current and comprehensive guidance. In addition, we welcome the opportunity to work with your attorney, accountant and other trusted professionals to deliver a comprehensive strategy that leverages everyone's expertise. Working together, we can help you develop a complete, tailored strategy to help you achieve your financial goals. I currently volunteer with the Manatee Hurricane football Broadcast and Booster Club, serve on my church's trustees council and have previously served as a leader in Young Life. I am a member of the Manatee Chamber of Commerce and an alumnus of their Leadership Manatee program. I have been married to my childhood sweetheart, Ashley, for 15 years and we have a son, Wesley, and daughter, Camryn. We enjoy watching our children play their sports and traveling as a family.
Edward Jones - Chad Choate, AAMS
Financial Advisor 828 3rd Ave. W., Bradenton, Florida, 34205Hello, I'm Chad Choate a dedicated financial advisor in Bradenton, FL, I began my career with Edward Jones in 2017. As a financial advisor, I want to find out what's important to you and help you build personalized strategies to achieve your goals. As a lifelong Manatee County resident, I graduated from the University of South Florida and was a teacher in Manatee County before joining Edward Jones. My driving force is to change people's lives in a positive way, and what better place than my home to do that. Whether you're planning for retirement, saving for college for children or grandchildren or just trying to protect the financial future of the ones you care for the most, we can work together to develop specific strategies to help you achieve your goals. We will also monitor your progress to help make sure you stay on track or determine if any adjustments need to be made. Throughout it all, we're dedicated to providing you with top-notch client service. But we're not alone. Thousands of people and advanced technology support from our office can help ensure you receive the most current and comprehensive guidance. In addition, we welcome the opportunity to work with your attorney, accountant and other trusted professionals to deliver a comprehensive strategy that leverages everyone's expertise. Working together, we can help you develop a complete, tailored strategy to help you achieve your financial goals. I currently volunteer with the Manatee Hurricane football Broadcast and Booster Club, serve on my church's trustees council and have previously served as a leader in Young Life. I am a member of the Manatee Chamber of Commerce and an alumnus of their Leadership Manatee program. I have been married to my childhood sweetheart, Ashley, for 15 years and we have a son, Wesley, and daughter, Camryn. We enjoy watching our children play their sports and traveling as a family.
Edward Jones - Chad Choate, AAMS
Retirement Planning 828 3rd Ave. W., Bradenton, Florida, 34205Experience and BackgroundI am a financial advisor in Bradenton, FL, and began my career with Edward Jones in 2017. As a financial advisor, I want to find out what's important to you and help you build personalized strategies to achieve your goals.As a lifelong Manatee County resident, I graduated from the University of South Florida and was a teacher in Manatee County before joining Edward Jones. My driving force is to change people's lives in a positive way, and what better place than my home to do that.Whether you're planning for retirement, saving for college for children or grandchildren, or just trying to protect the financial future of the ones you care for the most, we can work together to develop specific strategies to help you achieve your goals. We will also monitor your progress to help make sure you stay on track or determine if any adjustments need to be made. Throughout it all, we're dedicated to providing you with top-notch client service.But we're not alone. Thousands of people and advanced technology support our office so that we can help ensure you receive the most current and comprehensive guidance. In addition, we welcome the opportunity to work with your attorney, accountant and other trusted professionals to deliver a comprehensive strategy that leverages everyone's expertise. Working together, we can help you develop a complete, tailored strategy to help you achieve your financial goals.I currently volunteer with the Manatee Hurricane football Broadcast and Booster Club, serve on my church's trustees council and have previously served as a leader in Young Life. I am a member of the Manatee Chamber of Commerce and an alumnus of their Leadership Manatee program.I have been married to my childhood sweetheart, Ashley, for 15 years and we have a son, Wesley, and daughter, Camryn. We enjoy watching our children play their sports and traveling as a family.