They say the "Greatest Generation" refers to those Americans born in 1900's through 1920's. They not only lived through the Great Depression, many of them fought in World War II.
My father was too young to fight in World War II (he was born in 1931), however, he did live through the depression and fought in both the Korean War, and did 2 tours in Vietnam. The Greatest Generation members also tend to be the parents of the Baby Boomer Generation.
As a late member of the Baby Boomer Generation, I always felt the legacy of The Greatest Generation is that there was a feeling that each generation will prosper on the work done by their fathers.
My Father had it better than his father. Because of what my dad did for me, I had it better than he did. My children certainly had it easier that I did. One of my great fears is that the next generation - our grandchildren - will not have the same opportunities that we and our children had.
What are the Challenges?
There are many reasons to be concerned about our grandchildren. The country is divided politically, national debt & deficits, fear of inflation, reduction in benefits, stock market volatility, and people are living longer—putting pressure on our retirement plans. (If you want more detail see our blog 5 Greatest Economic Concerns Americans Face).
There are plans you can put in place that can protect your family. Not just you and your spouse, but also you children & grandchildren as well.
Insured Family Legacy Plan
The Insured Family Legacy Plan is a financial tool you can use that provides financial benefits for all 3 generations. It's an approach the leverages Cash Value Life Insurance, and in particular Indexed Universal Life or IUL.
The grandparent purchases life insurance on their adult children. The policy is structured to maximize cash value accumulation. Since it is owned by the Grandparent, he or she will have access to the cash values on a tax favored basis. The cash value can be used for any purpose: College funding, vacations, supplemental income, etc.
When the grandparent(s) pass away, the policy is inherited by the son or daughter (whoever the insured is on the policy). At this point, they can use the cash value for any purpose as well.
Ultimately, when the insured passes away, the death benefit will pass to the grandchildren tax free!. The Insured Family Legacy Plan has the potential to benefit all 3 generations, and do so on a tax favored basis.
The Insured Family Legacy plan provides comfort to anyone that shares my concert about our grandchildren. The difficult part of this concept is helping the insurance carrier understand the insurable interest the grandparents have in their adult children. Advisors Resource Company has the experience and expertise with this program as well as other advanced topics. Our Leverage Life Process will give you the tools and confidence to bring these solutions to your clients.