A life insurance contract is a valuable part of many individual’s overall estate. Thus, it should be reviewed on a periodic basis to determine: value, performance, beneficiary and ownership, as well as appropriateness towards achieving the original purpose and objective for which it was intended.
An immediate estate value of $1,000,000 can be created by taking out a term life policy for only a few hundred dollars per year when the insured is between the ages of 30 and 50, if they are in good health.
As one ages, the cost of term life increases. Therefore, a policy established on a premium basis is recommended, if there is still a need for life insurance in the estate. Universal life policies today, even on a minimum funded basis, can last to age 120. Life Insurance for estate tax purposes is highly liquid. In the case of sudden death, assets do not require immediate liquidation in the stock or real estate market. A life insurance policy can be paid to the estate in as little as seven days.
In summary, life insurance for estate tax purposes is cost effective, can be free of federal income tax, and is highly liquid. To determine if your life insurance policy still meets your needs, or if you are wanting to speak with a sales representative regarding implementing a policy, please contact:
Sr. Sales Executive, Life & Disability
Office Direct: 443-449-2324
Check out this article from Securian Financial on preparing you for long-term care!