Life insurance is often overlooked by many as an unnecessary expense. However, it is crucial to recognize the numerous benefits it can bring to your estate plan by providing comprehensive coverage.
In the event that the settlement of your estate takes longer than anticipated, your spouse may be required to sell off assets, including your property, to cover the taxes. Thankfully, life insurance proceeds are typically quickly paid out, preventing this situation.
Term life insurance offers coverage for a specific duration, ranging from one to 30 years, and its cost increases upon renewal. As you approach your senior years, the expense becomes significantly higher.
On the other hand, whole-life policies come at a higher premium but offer a level premium throughout your lifetime. They also accumulate a cash value over time, which can be substantial based on the policy size.
Considering the cash value aspect, a whole-life policy is essential for estate planning purposes. It is crucial to understand various factors while determining the required coverage, such as your income, the family’s needs in the coming years, business requirements, and potential healthcare expenses. It is advisable to obtain multiple life insurance quotes before making a purchase, given that costs can differ substantially. Consult an estate planning attorney for guidance on incorporating life insurance effectively into your situation.
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