Most people understand the importance of estate planning. Estate plans are vital in order to provide your dependents with economic security in the event of death. They are also imperative for the transfer of accumulated wealth to your loved ones and reduce the burden of estate tax during the transfer.
Unfortunately, very few individuals are aware that life insurance plays a significant role in many estate plans. Believe it or not, life insurance can protect your estate while securing your legacy. If you own a family business, farm, or another estate, you probably have the desire to pass it on to your loved ones upon death. Quick cash will likely be needed for outstanding mortgage payments and estate taxes. Life insurance can provide you and your family with the funds to pay for estate taxes, fees, and other debts necessary to protect your wealth.
Life insurance is an effective way to preserve your family assets. If you own a family business or farm, you know that it is the result of years and years of hard work and dedication. If you would like to keep the family business in the family, you should determine who has both the interest and ability to manage the business. In many instances, families can use life insurance benefits to “cash out” some of the other heirs to preserve the peace of the family while continuing the business.
In the event that you decide to donate your estate to a cause or charity of your choice, life insurance can assist as well. A life insurance policy can make it easy for you to directly donate your estate or replace it by issuing an irrevocable life insurance trust that provides a charitable organization with money for the value of your property.
A life insurance policy paired with a living trust or will guarantees that there will be a large sum of money available upon death so that your wealth can be effectively transferred to your beneficiaries. If your estate is complex, you may want to consider an estate-planning attorney to make sure you are making the best decisions for you and your family.
Protect Your Estate with Life Insurance from Simplified Life
Life insurance is an estate planning tool that should not be overlooked. By investing in life insurance, you can maximize the impact and value of your estate while minimizing the burden of estate taxes. Apply now for a simplified issue term life insurance policy from Simplified Life or give us a call today at 1-866-REAL-SIMPLE(1.866.732.5746) for more information on how life insurance can be useful for your estate plans.