What is legacy planning?
Legacy planning is the process of planning the distribution of assets of an individual to their loved ones. A legacy plan will detail how, who and when (in some cases), the individual would like to distribute their assets after they pass on. Despite being similar to estate planning, legacy planning goes beyond the allocation of financial resources. It demonstrates your love and care for your spouse and children, that you have already put measures in place to take care of them.
As we grow older and closer to retirement, we eventually realise that we can’t live forever. If you have worked hard and built a successful career, surely you would want to pass on something meaningful and valuable for your loved ones and heirs. This is why you should start planning what kind of legacy you want to leave behind.
1. Protect your loved ones
We all want our loved ones to be well-protected financially, even when we are no longer around. Legacy plans, such as China Taiping’s Infinite Harvest III, is a participating insurance plan that provides stable guaranteed monthly income and allows you to plan for legacy succession. Even though planning your legacy may remind you of your mortality, it is important to plan your legacy to ensure that your loved ones get to live through the legacy that you have left them, in remembrance of your time together.
2. Give your children and grandchildren a head start
As parents, you want to plan, provide and take care of your children’s future, even when you are no longer physically present. Legacy planning will help you pass down your wealth to your heirs through specific legacy planning insurance policies. Therefore, it is important to plan what kind of legacy you want to live behind for your loved ones in advance, so you can grow your wealth accordingly through legacy planning insurance policies, and give your children the best opportunities of success.
3. Leave a legacy that will be remembered
Oftentimes, it’s not what is left that we remember, but how it’s left and the feeling of continuing a legacy that etches into our heart. Planning your legacy early now will ensure a clear and smooth transition of your wealth, and you can even add a note to each of your heirs to convey your hopes and wishes for them. While you might not be present, your loved ones will know that you meticulously planned and arranged for them to continue the legacy you started. Creating and planning your legacy gives you the best chance of leaving a lasting legacy.
You worked hard to build your legacy, and while you may not be able to continue nurturing your legacy forever, you can plan ahead and pass the torch to your heirs to live their legacies through yours. In an ever-evolving world, it might be hard to predict how much to leave for your loved ones, and how much you should use for your retirement.
Speak to our experienced financial planners today, to help ensure you have the means to give them access to great opportunities in life.