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Too often, people who create an estate plan in Anaheim think only about the basic documents, such as the will, trust, or power of attorney. Effective estate planning, however, incorporates various other financial, health, and other elements into the plan. This includes the use of life insurance policies where appropriate. As you establish your estate plan, your attorney can work alongside your insurance advisor to assess whether a policy may be a good fit for your needs.
Why You Should Consider a Life Insurance Policy
Following are seven examples of reasons to consider incorporating a life insurance policy as you create your estate plan:
- To provide liquidity to the estate upon your death. Your loved ones may need quick access to funds in order to do such things as pay for your funeral, pay mortgages and related real estate costs, and pay other expenses involved in the administration of the estate.
- To repay a large debt that your loved ones would otherwise be unable to pay.
- To replace the income that you typically provide for your family.
- To provide your family with the security of knowing their financial needs will be met if you pass away.
- To pay for your children’s future college expenses.
- To provide support for a child with special needs.
- To provide funds to pay estate taxes.
In many situations, insurance policies are an excellent tool in an overall estate plan. Consider how a policy might benefit your family as you create your plan. To learn more about helpful tips and links to valuable information about California estate planning, we encourage you to find us on Facebook.