Life insurance is incredibly important, but it can feel complicated and overwhelming. To determine which life insurance plan is best for you, reach out to an experienced estate planning attorney. An attorney can help alleviate the stress by answering all of your questions and walking you through the process, each step of the way. Read on for more information regarding life insurance & estate planning.
What is Life Insurance?
Life insurance policies are contracts with insurance companies. When you purchase a life insurance policy, the insurance company will provide your beneficiaries with a lump-sum payment upon your passing, in exchange for regular premium payments while you are alive. The lump-sum payment is frequently referred to as a “death benefit.”
Are there different types of life insurance?
There are three main types of life insurance, which is why it is so critical you pick the type of insurance that is best for you and your family. The three most common types of life insurance are as follows:
- Universal life insurance: Universal life insurance provides the insured individual with lifetime coverage. That being said, generally, universal life insurance policies are rather flexible, meaning in many cases, you can actually raise or lower your premium payment or coverage amounts at various points in your life. That being said, these generally come with higher premium payments than other types of insurance.
- Term life insurance: Many people who lose potential income during working years will turn to term life insurance for relief. This type of insurance can replace lost income, however, the benefits are paid in one lump-sum, as opposed to regular payments.
- Whole life insurance: Whole life insurance is permanent life insurance, and it is designed to provide lifetime coverage. That being said, the premiums are generally higher than term life insurance, and are typically fixed payments with a cash value. The cash value works as a savings component, and may accumulate tax-deferred over time. Whole life insurance can help preserve the wealth you plan on transferring to your beneficiaries upon your passing, making it a useful estate planning tool.
If you have any questions or concerns regarding life insurance and how it fits in with your estate plans, reach out to our firm today to speak with an experienced attorney.
Contact our Firm
Working with an experienced estate planning attorney, such as Jaci Feldman of the Woodland Hills, California, Law Offices of Yacoba Ann Feldman, will ensure that you are taken care of when you need it most. Do not delay. Estate planning is a more urgent matter than you may think. You never know what the future holds. Contact The Law Offices of Yacoba Ann Feldman to schedule a consultation today.