Estate planning is an important financial responsibilitythat many of us can easily overlook. Life insurance plays a major role in the
planning process, especially when its function is understood. But what exactly
is life insurance? What benefits can it provide to estate planners, and how do
you choose the right policy for your particular situation? In this blog post,
William Schantz discusses all aspects of life insurance to give you a
comprehensive look at how it fits into estate planning. Don't pass up on this
opportunity to arm yourself with knowledge and make sure your affairs are in
order!
Bill Schantz On Life Insurance For Estate Planning
When it comes to estate planning, life insurance offers apowerful way for individuals and families to provide financial protection and
stability for the future. According to William Schantz, life insurance is an
invaluable asset that can be used to help fulfill goals such as providing funds
for funeral costs, covering debts or taxes due upon death, supporting heirs,
funding charitable giving, or establishing legacy gifts.
The primary purpose of life insurance is to protect yourloved ones from financial hardship in the event of your untimely death. It pays
a lump sum amount, known as a death benefit, which can be used to pay off any
remaining mortgage or other debts; provide college tuition payments or other
educational needs; cover final medical expenses, fund retirement accounts, and
so much more.
Life insurance is an investment in your future. It gives youpeace of mind knowing that the people you care about the most will be taken
care of financially if something were to happen to you. There are different
types of life insurance available, so it's important to understand which one
best fits your individual needs and lifestyle.
Term life insurance is a type of life insurance policy thatprovides coverage for a specified period of time—usually 10, 20, or 30
years—and pays out a death benefit only if the insured dies during this term.
This type of policy can provide protection against certain risks, such as
mortgage debt or other short-term obligations, while also allowing enough time
for long-term investments or savings goals to accumulate.
Permanent life insurance policies provide coverage for yourentire lifetime and typically offer multiple features beyond the death benefit.
Most permanent life insurance policies have a cash value that accumulates over
time which can be used to pay premiums, access tax-free loans, or even cash out
the policy entirely if needed.
Universal life insurance is a type of flexible permanentlife insurance policy with investment options. You are able to adjust the
premium payments, change the face amount of coverage or even stop making
payments altogether—all while keeping the same rate of return on your
investments.
Variable life insurance combines aspects of both term andpermanent life insurance by offering both a death benefit and an investment
component within one policy. Variable policies allow you to invest your premium
payments into different funds that are tailored to your personal risk
tolerance, says William Schantz.
William SchantzWilliam SchantzW’s Concluding Thoughts
No matter which type of lifeinsurance policy you choose, it's important, as per William Schantz, to review the
details and understand how the coverage works. It's also essential to talk with
an experienced financial advisor or estate planning attorney to ensure you have
a clear understanding of all your options and the potential costs associated
with each one. With the right approach, life insurance can be a powerful tool
for protecting your loved ones in the future.
