Estate Planning and Life Insurance

Life insurance can be a helpful estate planning tool. Many use it to help their loved ones cover lost income or pay off debts, but there are more uses for it. In this article, we will discuss 3 ways you can use estate planning and life insurance.

1. Final Expenses

Life insurance is an easy way to make sure that your final expenses are covered for your loved ones. These funds can be used to pay for the funeral, debts, and your final income taxes.

2. Estate Taxes

If you have a large estate there may be hefty taxes due upon your death. Anything valued over $12.92 million will be taxed at a 40% rate. If you are worried about your estate falling into this category, you can use life insurance. You will need to calculate how much in taxes you may potentially owe and then purchase a life insurance policy that will cover that amount. This will help to keep your estate intact and protect your loved ones from a hefty tax burden.

3. Business Budget

When you own a business with multiple people you need a plan on how to transfer your shares upon your death. This can be done with a buy-sell agreement. These agreements are funded with life insurance.

Utilizing Estate Planning and Life Insurance

With the proper planning you can utilize estate planning and life insurance for your budget.

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