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Life insurance policy an important part of estate planning

On Behalf of | Mar 14, 2014 | Estate Planning |

When people are young, they typically are more focused on keeping their jobs and caring for their families than on preparing for death. After all, for many, death is likely decades away. However, some people may unexpectedly come face-to-face with death today, too. It is for this reason that participating in estate planning in New Jersey is critical for people of all ages. One important part of an estate plan that some people neglect to include is their life insurance policies.

No matter how much a person has accumulated in his or her life, it is possible to leave money behind for family members when one dies. Life insurance makes it possible for a person who has died to provide the support needed to cover his or her end-of-life costs and debts. It also leaves funds that family members can use for themselves.

Employers often offer life insurance coverage, and it’s worth taking advantage of these policies. A person also may opt for private insurance. A term policy covers someone for a certain amount of time, at the end of which the person can drop the policy or renew it. Meanwhile, a permanent policy offers a guaranteed cash value amount and can serve as an investment and savings vehicle.

When doing estate planning, it is important to include all assets, including life insurance policies, in a will or trust. Otherwise, loved ones will not benefit from them in the event of one’s passing. Creating estate plans essentially allows people in New Jersey to posthumously control how their valuables are distributed and ensure that their families are cared for in the future.

Source: Cleveland Jewish News, Don’t forget to include life insurance in your estate plan, Andrew Zashin, March 13, 2014