Estate Planning as a Career

Types of Life Insurance in Estate Planning

February 21st, 2009 Filed under: ab trust,Executor Fees,sample wills,Trusts attorney — Estate Planning Author

As we mentioned in previous articles, estate planning is the process of accumulating and disposing of wealth before death of an individual or estate owners. The most important goal of estate planning is to make sure that the greatest amount of the estate is passed to the estate owner’s intended beneficiaries while paying the least amount of taxes. Life insurance always play an important role in estate planning because they are tax free on the hand of designated beneficiaries up on the death of insured. In this article, we will discuss 3 types of life insurance are used in estate planning.

I. Term

It is a type of insurance that protects the insured family for a certain period of times such as 5, 10 and 20 years. it is best used in estate planning for people who plan to start a family soon, because it is cheap compared to other types of insurance. Most term life insurances are used to create an estate asset in case of sudden death of policy holder.

II. Whole life

It is a participate insurance with dividends paid by insurance company each year. It is best used in estate planning for people who already have known their assets or for people who want to create an estate asset in case of sudden death.

III. Universal life

It is the best insurance for people who have a lot of unpaid taxes, because it contains life insurance and investment values. At the death of the policy insured the life insurance and the funds accumulated are paid to the designated beneficiary or beneficiaries tax-free.

I hope this information will help. If you need more information of insurance or series of articles of the above subject at my home page at:

http://medicaladvisorjournals.blogspot.com

http://lifeanddisabitityinsuranceunderwriter.blogspot.com/

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“Let Take Care Your Health, Your Health Will Take Care You” Kyle J. Norton

I have been studying natural remedies for disease prevention for over 20 years and working as a financial consultant since 1990. Master degree in Mathematics, teaching and tutoring math at colleges and universities before joining insurance industries.