HOW DOES PERMANENT LIFE INSURANCE IMPACT ESTATE PLANNING?
Estate planning is the process of creating a process for what happens to your investments and assets after your death. It also works to minimize taxation and helps you to protect your family. Permanent life insurance can often be an integral part of this plan. It’s essential to work with a trusted, experienced independent life insurance agent who can help you to invest in the proper plan. Then, you’ll need to work closely with your estate planning attorney to put an estate plan in place. But, how does it work?
The Benefits of Permanent Life Insurance in Your Estate Plan
Utilizing permanent life insurance as a part of your estate plan can be very good for your future. Here’s a look at some of the key benefits it may offer:
- It creates an estate for you immediately. That means it establishes the estate with funds from the policy.
- It allows your estate to avoid some taxes. Life insurance in an estate is not typically subject to estate taxes. Therefore, it can preserve some of the value of the estate.
- It helps you establish a larger total worth. This provides you with leverage if you need to borrow over time. But, it also allows you to maximize your total worth in the long term as well.
- It’s a source of retirement income – that’s tax-free. You can use the cash value from the policy to help fund your retirement.
- It can also help provide long-term care or disability support should you need it during your lifetime.
For these reasons, speak to an independent insurance agent about how permanent life insurance will work within your current estate plan. Or, use it to establish an estate plan and start controlling what happens to your assets when you die.
At Dimmitt Insurance, we provide one-on-one support to help you to make the right decisions about your life insurance purchases. Contact us now for a free quote on permanent life insurance by calling 866-763-6627 or utilize our online free quote form right now.
