Life insurance is vital to estate planning. It lets you preserve your wealth, provide for dependants or your spouse, and ensures there’s money available for taxes and debts. Keep reading to learn how to protect your beneficiaries with life insurance. Feel free to contact your Fida Insurance Group agent for more information on your specific situation.
Estate Planning for Financial Dependents
If you are the primary wage earner in your household, life insurance can replace your income. This is especially important if you still have a large mortgage or other debt. Even if you have a lot of cash, it’s a good idea to get enough life insurance to cover a few years of income. This gives your spouse and children liquidity and time to make any changes needed to preserve their lifestyle or scale down.
Estate Planning with Young Kids or Special Needs Children
To protect very young or disabled children, life insurance is imperative. You should consider term life insurance policy to cover children until they turn 18. For special needs children, you may need up to a 30-year term or get whole life insurance policy to cover their needs. You can set up a trust to control the disbursement of the inheritance for disabled or young children.
Estate Planning for Business Owners
If you co-own a business, consider a buy-sell agreement that is paid for with life insurance. In this agreement, the surviving partner uses a life insurance policy to buy out any heirs to preserve control over the business. This protects your business partner against unqualified heirs becoming involved in the day-to-day operations and protects your business from insolvency.
Feel free to contact Fida Insurance Group in Monroe, CT today for life insurance questions or to make an appointment for a quote.