As the field of elder law broadens in scope there are a number of retirement and estate planning components that many people are learning about for the first time. Things like advance health care directives, durable powers of attorney, pay on death accounts, living trusts and other relevant legal instruments do indeed aid in effective estate planning. But some things that we are all well aware of never go out of style, and life insurance is one of them.
When you pass on there are going to be expenses involved. Aside from the funerary costs, which can be considerable depending on the specifics of your wishes, there are also costs associated with the administration of your estate. Life insurance policies can provide ready liquidity that your family can use to address these after-death expenses without reducing the value of your existing assets.
The above is true for everyone, but younger people have additional reasons to make sure that they have sufficient life insurance. If you have a family and you were to die suddenly without a plan in place, could your loved ones survive economically? Losing a parent or a spouse is traumatic in and of itself, but losing your home and suffering a diminished quality of life while you are trying to deal with the tragedy makes the situation even more devastating. It is imperative that you evaluate the financial needs of your family on an ongoing basis and make sure that the level of life insurance that you have purchased is providing sufficient coverage. Think long term when you are assessing your life insurance needs, and consider things like college expenses and the ongoing increases in the cost of living.
A well rounded estate plan can include multiple elements, but the tried and true life insurance policy is still relevant. The peace of mind that it buys in relationship to its cost makes it one of the best inheritance planning values available.
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- Leaving Assets Can Be Tricky – Part 3 - August 13, 2020