Many people underestimate the importance of life insurance in sound financial planning.
While many people are proactive about creating a basic will or trust, they often avoid life insurance or do not choose an adequate policy that can protect their loved ones’ financial stability. Much of the reason for this oversight is that people find themselves uncomfortable with the various nuances and details of life insurance policies.
In order to ensure that a life insurance policy is as effective as you need it to be, you should discuss such policies with a Hillsborough County Estate Planning Attorney as part of creating a comprehensive estate plan that ensures your loved ones are protected in the event of your death or disability.
What is life insurance?
Depending on the specific policy, life insurance is an insurance policy that pays a particular amount of money upon the insured’s death or after a set period of time.
There are a variety of different policy options available with a wide range of coverage options.
Importantly, life insurance is one of the simplest ways to ensure that your loved ones are adequately provided for. The death of a loved one is a stressful, unpleasant experience that is mentally, emotionally, and physically draining on those it touches. However, an adequate life insurance policy can ease the burden that many families face. The collection process can often be very simple and straightforward, and the policy coverage benefits a loved one can claim will undoubtedly help with unexpected expenses related to probate, funerals, medical bills, and other costs that many people may not think about when planning their estate.
What type of life insurance is right for me?
Only you can choose the life insurance policy that best suits your needs. However, an experienced estate planning attorney can help you review the fine print of various policies to really understand how they can align with your needs. There are two basic types of life insurance policies available: term life and whole life. Each of these has subcategories, and the exact details will depend on the type of policy in question.
Whole life insurance is a type of life insurance that pays a death benefit regardless of how long the insured person lives. Sometimes, when an insured lives to a certain age or beyond, the cost for such insurance can begin to rise. The details of premiums due and the amount that such premiums may increase over time is something that Summerfield Law Office can help you understand when looking over and/or considering a specific whole life insurance policy.
On the other hand, term life insurance policies generally cover the insured during a specific period of time. The term of coverage depends on the policy itself, but they will often max out at the end of a 30-year period. Depending on the specifics of the policy, the benefit provided may stay the same for the life of the policy or may decrease with each year within the life of the policy. Term life insurance policies can often extend past the life of their term, though the premium you pay during the term of the policy may increase substantially after the term of the policy.
How can I make life insurance a part of my estate plan?
Discussing potential or existing life insurance policies with your Riverview Florida Estate Planning Attorney is an important step in creating a sound estate plan. These discussions can help you become more clear about the details of certain policies so that you and your loved ones are not caught unprepared when a life insurance policy is needed the most. Further, estate planning attorneys can help clear up the procedure that specific policies require for someone to collect on a life insurance policy so that your beneficiaries are familiar with such procedures. Contact Summerfield Law Office today where a Florida Licensed Insurance Agent is on staff to guide you on how to add a life insurance policy to your estate plan, or to work together to build a strong estate plan.