How do you buy life insurance like a pro?

Review the following tips before buying a life insurance policy.

Get the Right Type and Amounts

Do some preliminary research. You need to be sure you are in the know, so you don’t buy a product or amount that you don’t need or overlook the types and amounts that are right for you. Your estate planning attorney can help you make objective decisions about your insurance needs.

If You Can, Supplement Your Employee-Benefit Life Insurance

Let’s face it, jobs change. You shouldn’t rely on an employee benefit that may not carry over if you leave the company. Also, you may experience medical issues before you leave the company, which may make it more difficult to buy coverage later. So consider buying outside coverage while you can.

Don’t Name a Minor as a Beneficiary

If you’ve named a minor child as a beneficiary, or even a secondary beneficiary, after your spouse, you could be creating double trouble. First, your life insurance would have to go through a court process and subject to the control of a financial guardian, and then second, whatever is left would be distributed to your minor child when he or she turns 18. You can easily avoid this by naming a trust as beneficiary of your life insurance, thereby keeping your life insurance out of court and ensuring your child doesn’t receive control until he or she is ready. Plus, then you get to decide who takes care of the life insurance money you are leaving behind, until it’s distributed to your child. And you can even build in protection against your child’s future divorce, or any creditor issues.

Consider Term Insurance to Fund Divorce Settlements

If you receive child support or alimony, insist that your ex-spouse have a term life insurance policy to guarantee you are able to collect on your settlement or support obligations, if your  ex-spouse dies before completing the payments.

Compare Quotes for Whole and Term

Many experts suggest that folks only need life insurance to cover their working years and while they raise a family. But before you decide on what kind you want, think about your budget and your goals. Term life insurance is typically affordable and covers you when you need it most. Permanent insurance typically costs more, but is helpful to cover estate taxes or if you want to use it as an investment vehicle with guaranteed returns or for creditor protection.

Don’t Overlook Living Benefits

A living benefits rider could allow you to access funds if you were diagnosed as terminally ill or with a chronic and debilitating condition. Keep in mind that the chances of becoming disabled before you retire are increasing. And according to the U.S. Census Bureau, just over 1 in 4 of today’s twenty-year olds will become disabled before they retire.

Consider the Big Picture. Call us at (813) 902-3189

Insurance is a valuable part of your estate plan. If you’re interested in learning more about how insurance fits in with protecting your family and achieving your goals, schedule your consultation with us.

 

 

 

 

 

How do you talk about your estate plan with your family?

Is it time to have “the talk” with your kids about your estate planning? It can be hard to have these conversations with your family. Here are some tips to make it easier.

Preparation Is Key

1. When you choose important decision makers, make sure you match the skills of the person to the job.

For example, the Personal Representative (also known as the executor) of a will must be able to gather assets, prepare paperwork, handle finances, and deal with potential family disputes. Don’t choose a Personal Representative that isn’t up to that job.  Too often, people choose executors, trustees, guardians, and powers of attorney based on emotions or arbitrary factors, such as who is the oldest child or who might be offended if not chosen. These are difficult, demanding jobs, and you need to choose people who can handle them. It also helps to talk these issues through with an experienced attorney or confidant in advance of making your selections.

2. Prepare your paperwork.

Work with your lawyer to make the best decisions possible, and commit them to writing. This will help reduce any misunderstandings about your wishes.

3. Think about the questions that your family might ask.

For example, if you are worried that one child will be upset because you named another child executor, be ready to answer questions about why you made that decision. Your explanation will go a long way toward reducing any hard feelings and potential disputes after you’re gone.

4. Come Prepared for Business

Once you have your family together, it is important that you not only let them know what your decisions are, but also that it is important to you that they support you and each other. Have copies of your documents available so your family can ask questions about them.

If someone just can’t get onboard, remember that you are dealing with your life and your assets. The ultimate decisions as to how you handle them are yours, and you can even terminate the meeting if necessary. Also, make sure your family knows that your decisions may change as time goes on.

5. Remember that the goal is to provide your family with more than just a set of legal documents outlining your wishes.

By talking to them about your intentions you are helping them gain understanding, comfort, and even buy-in with your plan.

Call (813) 902-3189 to book your Estate Planning Session. We can help you gain peace of mind!