New Jersey residents have a number of tasks to address while creating an estate plan. One of the aspects of estate planning that is often overlooked involves life insurance and the role that this coverage plays in providing for loved ones who are left behind. While not every family will need life insurance coverage, it is a good fit for any family in which the income of one or more parties is needed to maintain the current standard of living.
When shopping for life insurance, the first step involves determining the proper level of coverage. This requires the collection of all financial information, including income, assets and debts. With this information in hand, it is possible to calculate what the family’s expenses might be after the death of a spouse or other family member. From that point, the proper level of coverage can be secured.
Once a life insurance policy or policies have been purchased, the next step is understanding the ins and outs of that coverage. Each spouse should know which company holds the policy, the amount of coverage it provides and when the term expires. As with most financial matters, the more information that is known the better.
Life insurance can play a vital role within the larger estate planning package. When the proper level of coverage is purchased, the proceeds from a life insurance policy can make the months and years following a loss far easier for a New Jersey family to manage. In many ways, this is a gift that loved ones leave for each other, and a measure of financial security that is deeply appreciated when it is called into action.
Source: USA Today, “5 ways couples can tackle estate planning now“, Barbara Marquand, Nov. 14, 2015