It is important to plan your legacy carefully, so that you can organise and maximise your wealth for your children and heirs to have an easier time financially.
If you are starting or already in the midst of planning your legacy, here are some tips you should know:
1. Separate your legacy fund from your retirement plan
Your legacy fund is what you will be leaving to your spouse or children when you are no longer physically present. As much as you would like to give your heirs everything you have, you should also remember to have a separate plan to fund your retirement, so that you can enjoy your dream retirement and not become a burden to your children. That’s why it’s important to separate both funds, so that you can enjoy the fruits of your labor and the retirement of your dreams, while leaving enough for your heirs to continue your legacy.
2. Separate your business from your legacy plan
It takes years of experience and dedication to build a business empire that can prosper for more than one hundred years. Even though you have children, they might not be interested in succeeding you in your organisation. Your children may already have a goal or dream, and would appreciate assets with more liquidity which can help them reach their goals. Therefore, it is crucial that you separate your business from your legacy plan, so that what you leave for your children can help them achieve their dream lives.
3. Use insurance to increase your inheritance
Savings alone are not enough to grow your inheritance exponentially. That’s why you can consider purchasing legacy insurance plans. Not only can you migrate the risk to the insurers, you can also plan ahead for your heirs by starting to save early to accumulate your wealth for the future bit by bit. Most legacy insurance plans in the market guarantee your capital, and some even offer guaranteed monthly coupons, which can help fulfil your needs in different stages of life.
4. Use endowment or savings plans to provide lifelong income for your heirs
Did you know that you can still provide lifelong income for your children and grandchildren as a gift? Plans such as China Taiping’s Infinite Harvest III are specially designed so you can arrange lifelong income for your heirs, on top of bonus cash coupons. Eventually, when your child passes on, your grandchildren will receive a lump sum payout. This way, you will not have to worry about your heirs mismanaging their lump sum inheritance, as they will receive monthly cash coupons to spend more carefully.
Managing wealth and planning your legacy is no easy feat. Feel free to contact our experienced insurance consultants to help you gain clarity or decide the right approach to your legacy plan.