There are many different issues that you need to consider in making sure your family is provided for. You’ll want to ensure that assets pass as quickly as possible to heirs or beneficiaries so they can inherit, which may mean taking steps to avoid the probate process. You’ll want to try to reduce or avoid estate tax so your loved ones can receive the largest inheritance possible and you may also wish to take steps to protect assets from being lost by irresponsible heirs. There is a lot to consider when you’re making an estate plan, and one of the key factors to think about is whether your estate will be large enough to provide for your loved ones. If you do not think you will leave a sufficient amount of assets behind to meet the needs of your surviving dependents, you will want to consider the purchase of life insurance.
The attorneys at SinclairProsser Law can help you to determine if buying life insurance should be part of your estate plan.
Life insurance will pay out a death benefit to your chosen beneficiary when you pass away. If you have anyone in your family who needs your income to maintain his or her quality of life, you should strongly consider purchasing a life insurance policy. Even if your income is not supporting a spouse, children, or other family members, buying a policy may still make sense for you. You may need life insurance coverage if you are providing services that are valuable to anyone. For example, if you are a stay-at-home parent or if you are taking care of your own aging parents, you have people relying on you. Even if you aren’t making money, you’re providing a service of value that would likely need to be paid for if you were not there to provide it. Your family members could use the money from your life insurance policy to pay for the services that you were providing.
You should also consider the purchase of a life insurance policy if you expect to have people depending upon you later, even if you do not currently have any dependents. Buying a policy when you are young is typically more affordable. You can also make sure you have coverage so you won’t have to worry about developing a condition that makes you uninsurable later when you really need the protection.
While it’s wise for most people to have a life insurance policy if they have people depending upon them now or if they will have someone depending upon them in the future, there are certain circumstances where having coverage is especially important. If you have a disabled child who will need ongoing financial help or if you have a minor child who you wish to provide for, it makes sense to buy a life insurance policy to ensure there is money available even after you pass away.
The attorneys at SinclairProsser Law will assist you in determining if life insurance is necessary, given your assets and your family situation. If you have decided to purchase a life insurance policy, we can also help you to make smart choices about how the death benefit is paid out to your loved ones. For example, you may wish the death benefit to be paid out to a trust if the money is intended to provide for a minor or if it is intended to provide for a disabled family member who wouldn’t be able to manage the money and whose means-tested government benefits could be at risk due to a large influx of cash.
If you are ready to make your plans for providing for your family, we can help.
Latest posts by Colleen Sinclair Prosser, Estate Planning Attorney (see all)
- End-of-Life Planning: Estate Planning at its Core - November 22, 2019
- Passing the Torch - November 14, 2019
- Do You Know Who Your Designated Beneficiaries Are? - October 10, 2019