Depending on how you structure your gift, you can realize significant tax advantages during your life or benefit your estate. Remember, your life insurance needs can shift over time. As your life changes, your life insurance coverage may no longer be needed for the purpose it was originally purchased. Using it for charitable purposes might make good sense for your community and for your tax situation.
Mention the idea of life insurance as a gift and most people will react with skepticism. It’s not as exciting as concert tickets or as cool as the latest smart phone. And for many of us, it’s downright morbid. But we buy our loved ones gifts because we want to increase their happiness and well-being. Viewed in this light, life insurance, for yourself or a family member, just might be one of the greatest gifts you can give to someone you love.
For many of us, those on our gift list may already have enough sweaters, candles and electronics to keep them warm and entertained for years to come. Finding a unique gift that shows how much you really care can be challenging. With life insurance, you can skip the long checkout lines and shopping mall traffic, and give your loved-ones a present that’s value may outlast the next novelty gift or fashion trend. Of course, life insurance may not be the right gift for everyone, but for the special people in your life consider buying a life insurance policy for them this holiday season.