{"id":745,"date":"2019-03-27T16:40:15","date_gmt":"2019-03-27T16:40:15","guid":{"rendered":"https:\/\/ladderlife.com/blog\/?p=745"},"modified":"2021-05-19T19:15:00","modified_gmt":"2021-05-19T19:15:00","slug":"how-life-insurance-can-create-legacy","status":"publish","type":"post","link":"https:\/\/ladderlife.com/blog\/2019\/03\/27\/how-life-insurance-can-create-legacy\/","title":{"rendered":"How Your Life Insurance Can Create a Legacy"},"content":{"rendered":"\n
Life insurance payouts are usually talked about in terms of basic damage control. They allow beneficiaries to grieve without having to significantly alter their lifestyle \u2013 replacing the income of a breadwinner or important financial contributor as they get through a difficult period in their lives.
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That\u2019s an important function of any policy, but life insurance can also be used to build something new. Your family may no longer rely on your income to survive after you are gone, but that doesn\u2019t mean you can\u2019t contribute to their future well being and financial stability. By using your policy to establish a legacy for future generations, you can rest easy in the knowledge that your passing and legacy planning will open up opportunities for those you leave behind.
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That\u2019s what happened when Emily Guy Birken\u2019s father passed away, leaving behind a $250,000 policy for his two daughters and their families. <\/p>\n\n\n\n
In 2013, Guy Birken\u2019s father was diagnosed with neuroblastoma, a rare type of cancer with a low survival rate. He died six months later.
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After his death, Guy Birken and her sister, who were beneficiaries of his life insurance policy, received claim payouts \u2013 $125,000 each. Her father was a financial planner who was always careful with money, and he spent his final months making sure his estate was in order.
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When she received the money, Guy Birken spent a lot of time thinking about what to do with it. She wanted to use it for something her dad would have approved of instead of fun trips or material luxuries.
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She ended up dividing the funds like this: $25,000 each to her two sons\u2019 529 accounts, $50,000 to her retirement account, $12,500 to charity and $12,500 to help pay for a move to Wisconsin in 2016. Her sister decided to follow suit, using a portion of her share for her daughter\u2019s college fund.
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Guy Birken said her father always emphasized the value of education. When she was growing up, he told his daughters to get into the best college possible and let him worry about paying for it.
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\u201cHe always told us, \u2018Don\u2019t look at the right side of the menu, don\u2019t look at the prices,\u2019\u201d she said.
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