Tuesday, April 7, 2009

Leaving Assets For Future Generations

I got into a talk with one of these financial planners lately. The topic we talked about was basically insurance and how one could virtually give one's child/children a good inheritance.

The idea might sound warp but it is worth thinking about. Basically, it involves you just buying a whole life insurance and not drawing that money out/surrendering the policy/or letting it lapse.

As death is certain, you can be assured that your beneficiaries will receive whatever amount is the sum assured on your life as well as any accumulated bonuses. So perhaps for a total price of $100,000 over say a period of 25 years ($4000 per year), you are able to pass over quite a sizeable fortune (maybe $0.5 million) to your child/children when you die. That is of course if you do not surrender the policy or anything before your appointed time with the Maker.

Just food for thought =)

By the way, I added another 200k insurance which brings my total insurance to $560k life coverage.

Have updated my adsense earnings for the month of March here.

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