One way to protect your loved ones even after you die is to create an estate plan. In so doing, make sure you provide the assets necessary so they can carry out your goals for their future. Life insurance helps many people provide for their loved ones no matter what.
Who benefits from life insurance?
Many people benefit from life insurance coverage:
- Business owners
Do you own a business? Would you like to leave it to some (but not all) of your children? If so, a life insurance policy provides cash to the children who are not receiving an interest in the business, thus equalizing the value of each child’s inheritance. A surviving business partner may use life insurance proceeds to buy the deceased partner’s interest from their family. That way, the deceased partner’s loved ones secure funds without interrupting the business. - Parents with young children
A life insurance policy covers the expenses of raising children after parents die. Thus, it relieves the guardian from bearing a financial burden. Life insurance also provides for a surviving parent. This helps when the deceased parent provided the family’s primary source of income. - Anyone caring for a disabled family member
A life insurance policy sometimes provides money for continuing care of family members with long-term disabling health conditions. However, consider this if they currently receive or remain eligible for government assistance; you must exercise caution to make sure this does not disqualify the family member from receiving those benefits. - Charitably inclined individuals
A standard policy effectively funds charitable endeavors. What’s more, it does so without taking away from other accounts or property meant for loved ones. Insurance enables you to leave a larger gift to charity at your death than you would have if you had continued making lifetime contributions. - People facing a large estate tax bill at death
Is the value of your accounts and property is more than the lifetime exclusion amount at your death? If so, estate tax may be due. Life insurance provides your loved ones with cash to pay the tax. This cash helps offsets debt, protecting accounts or property from liquidation.
Next Steps
Call today to schedule an appointment to discuss your estate plan. Do you already own a policy? If so, we can review the beneficiary designations. We will make sure they fit your ultimate goals. If you do not have life insurance or think you may need more, we could offer referrals. We are also available to meet with you and your other advisors. Together, we can ensure that your comprehensive financial and estate plans work as planned.
About Skvarna Law in Glendora & Upland, California
Skvarna Law Firm operates offices in Glendora and Upland, California. Also, we provide legal services. We cover San Bernardino, Los Angeles, Orange, and Riverside Counties. This includes several cities. Upland, Ontario, Rancho Cucamonga, Fontana, Colton, Rialto, Chino, Chino Hills, Glendora, Claremont, Pomona, La Verne, Montclair, San Dimas, Azusa, Covina, West Covina, Diamond Bar, Walnut, La Puente, Corona, Norco & Mira Loma.
