How can you leave tax-free money to your children in the United States?

Many people view life insurance as a contingency – one that only becomes valuable when something unfortunate happens.


However, life insurance actually does much more than that.


Especially for young families, life insurance is both arisk management tools, also aImportant Financial Planning Strategies.



Life insurance basics

Provides financial protection to the insured's family or designated beneficiaries to cope with the financial losses caused by illness or accidental death of the insured.



With proper planning, life insurance can help families realize tax benefits and serve as a means of building wealth.


Hello everyone, we areAC Harvest Strategies, a team of certified public accountants (CPAs), finance, real estate and insurance experts dedicated to using a number of different tools to helpAchieving financial goals and early retirement for individuals and familiesprofessional advisory team.


Thanks to the diverse professional backgrounds of our team, we are able to assess our clients’ financial situation from multiple perspectives and develop the optimal strategy that suits their personal circumstances. Whatever is neededFinancial advice, tax planning, business strategy or risk management?, our team can provide professional guidance and solutions.





risk management tools



Life insurance can minimize family financial risks caused by unexpected events.


For example, if the main breadwinner of the family unfortunately dies, insurance benefits can help the family pay for posthumous affairs, maintain life, and relieve financial pressure.


In addition to the basic death benefit, some life insurance also has a pre-living benefit function. For example, eligible insured persons can receive early payment through additional options (Riders) such as critical illness, long-term care or terminal illness.


The amount paid can be used for the insured’s treatment and care expenses or to supplement income during illness.




Tax advantages and long-term savings capabilities


In the United States, life insurance also aids in tax planning.


Insurance death benefits are generally exempt from income tax and capital gains tax, but are included in the gross estate.


Some types of insurance products also have a savings feature that can accumulate tax-free cash value that can be used for retirement savings or other financial goals.


This makes life insurance an ideal long-term asset growth tool.




case study


Consider a healthy 32-year-old male.


He has a mortgage of more than RMB 100 million and has two minor children. He currently has a term insurance of RMB 50 and a savings (permanent) insurance of RMB 200 with a monthly premium of $2000, paid in total for 10 years.


If he dies prematurely, the insurance company will pay $250 million to the beneficiary, which is enough to meet the financial needs of living expenses, family debt, and children's education and development.


If he is lucky enough to live healthy and healthy until the age of 60, after more than 20 years of saving and accumulation, he can accumulate a cash value of about 70.


At this point, if he chooses to retire, this policy can provide approximately 58K tax-free income per year.




How to get started


①Assess needs


Start by assessing your financial situation and insurance needs and consider what protection you want your insurance to provide for you and your family.


② Understand the options


Research different types of life insurance products and learn about their features, benefits, and costs.


③ Consult professionals


Work with a professional home financial advisor to choose the insurance strategies and products that best fit your personal situation.


Through the above three steps, insurance planning can be carried out more systematically to ensure that families have sufficient financial security and protection when facing future uncertainties. This process may require the guidance of a professional financial advisor to ensure that the insurance products and strategies are selected that are best for you and your family.



At AC Harvest Strategies, we insist on "forward-looking home planning," which means we don't follow the old "one size fits all" path, but tailor the most appropriate planning solution based on each family's unique needs.


We always put our clients' needs first, develop strategies, execute plans and regularly evaluate results to ensure everything goes as planned.



Service content includes but is not limited to:


Offensive service

Provide you with professional financial advice and solutions.


Tax planning

Optimize your tax burden through legal means and pave the way for your financial future.


Business Consulting

Provide financial strategies for your business to help it grow steadily.


Risk management and control

Identify potential risks and provide protection for families.


succession planning

Make sure your estate and trust planning meets your expectations.








Life insurance plays a key role in family financial planning.


With proper planning, it can not only provide necessary risk protection, but also help you achieve tax benefits and wealth accumulation.


AC Harvest Strategies encourages families to rethink the way they think about insurance,With thorough understanding and proper planning, life insurance can be a powerful tool for your financial stability and long-term growth.


* This article is a food promotion article
It does not represent the position of foodies, it is just for passing on
for informational purposes and does not constitute a recommendation for any conduct

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