Everyone wants to know that all of our hard work will go on to make it just a little easier for the ones that we leave behind.

To know that we not only made memories but also help bring peace, protection and stability to those we love or the businesses that we built.

There are many ways to pass on our wealth, through wills, trusts, gifts, etc. What many people don’t realize is that life insurance can be used to share resources with the ones we love.

Here are four secrets to help your love live on.

It’s for your loved ones – however you define them. You don’t have to be married or have children to provide for the ones you love. As you think about life insurance, think about loved ones who depend on your income. Or, consider those that you would like to leave a special gift. This may include parents, grandparents, siblings, nieces/nephews, relatives with special needs, live-in partners or special friends. Life insurance can be used to help cover college education costs, start that dream business or help with living expenses.
As a gift for a young child. A series of gifted premium payments to a permanent life insurance policy can provide grandchildren, niece or nephew with additional education and financial opportunities. The tax-deferred savings that accumulate within the policy can be accessed for various purposes including a college education, business opportunity, or a down payment on a home. In addition, the cash value can also help supplement retirement income later in the child’s life. It’s the gift that keeps on giving.
To support your favorite charity. The gift of life insurance is an economical and tax-advantaged way to benefit your favorite charities using either an existing life insurance policy or a new policy.

Existing life insurance policy: You might find that you have a life insurance policy that you no longer need for its original purpose. Perhaps you purchased a policy years ago to cover a home mortgage that has since been paid off or you left a business in which you were a key person and took with you a policy that was originally purchased to cover a business need. In any event, your changing circumstances may have freed up a policy you can give away.

New life insurance policy: You may consider using a new life insurance policy as a tax advantaged way to benefit a chosen charity. You make annual contributions to your charitable organization, which may entitle you to an income tax deduction. Your charity then uses your contributions to pay the life insurance premiums each year. The policy builds cash value over the years, which is available to the organization. Upon your death, the policy proceeds are paid to your charitable organization.

For donations to qualify for a tax deduction, they must be made to a qualified charitable organization, or specifically, a 501(c)(3) organization. Generally, qualified charitable organizations include religious, scientific, literary, educational, government and veterans’ organizations.

Ensure that your business continues smoothly. Planning for the continuation of a business is a fundamental need, especially a business with more than one owner. Life insurance can be an important part of your business continuation plan allowing the partner(s) to buy out the other partner for a smooth transition. Life insurance can also help with the loss of a key person and can help retain and attract new employees. It’s an important part of your financial plan that can bring peace to both your family and your business partner(s), knowing that both will continue on.

Cosmo Insurance Agency is an independent insurance agency serving surrounding communities in New Jersey. Cosmo keeps its promise to assure an efficient and creative approach to the services we offer. Each of our clients experience a personalized and long-term relationship with us. Our New Jersey based team of health brokers guides our clients in helping them choose the most cost-effective options. By incorporating the latest in technology-based tools and laws on healthcare, employee benefits, life insurance and finance, we keep our clients up-to-date with the plans that encompass all of their needs, whether it is individual or group insurance.

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