Even if you’re a millionaire, you should still consider investing in a Life Insurance Policy. I think it’s one of the most important things you can do for your future to have the best retirement possible.
Invest in Life insurance!
This does at least three different things depending on how it’s designed:
- Income Replacement: If someone has high income, and the spouse doesn’t work, then just like the rest of us they may want an influx of cash to go to the spouse if they pass away and can’t work to generate income anymore
- Maximize the size of estate and minimize taxes due to the heirs: To leave the most amount of money behind to loved ones, and minimize taxes, the existing assets (not needed for income) should be used to buy life insurance. This will leave the largest amount behind to loved ones or charities.
- Stock-Like Growth followed by Tax-Free Distributions (Income): Distributions from properly structured life insurance policies come out tax-free like Roth IRAs. So tax-free anything is very attractive to anyone in a high tax bracket.
Listen here for more teaching on life insurance and its uses
(The Renovating Retirement Podcast now has over 70 episodes):
RR Episode 006 – (What The Heck is a MEC?)
RR Episode 027: The Rich Man’s Roth IRA
RR Episode 043: Six Ways to Improve Cash Value Life Insurance