How Can Life Insurance Help Me with Estate Planning in West Bloomfield Michigan

If you are planning your estate in West Bloomfield, MI, life insurance can protect your large assets and help safeguard your wealth. Life insurance provides a payout that helps your family keep your home or business after you are gone. Ask your Phil Klein Insurance Group agent how to start a policy.

Planning Achievements Accomplished through Insurance

Use life insurance in your estate plan to increase your liquidity and cover payment of your remaining debts. Life insurance provides income replacement for your family and safeguards the wealth you have accumulated over a lifetime.

There are numerous policies to consider, and you can also customize your policy to meet the needs of your family. Ask your agent for details on flexible life insurance for estate planning.

How to Use Life Insurance to Provide for Survivors

Nearly all estate plans include some life policy. That’s because it’s one of the easiest and most secure ways to provide income for spousal support, education expenses, and business transitions. Some policies provide income to fund your retirement.

For large estates, life insurance helps cover the cost of burial and death taxes. In this case, insurance ownership is a significant tax-savings device. Note that it’s important to consider how well your beneficiaries are protected by the chosen insurance policy.

Larger estates exceeding the federal tax exclusion require life insurance to minimize or eliminate probate costs.

Types of Life Insurance

There are two types of life insurance, referred to as trusts, as follows.

Revocable Life Insurance Trust

In this type of life insurance, the policy owner sets up a trust and names it as the beneficiary of the policy. The policyholder can revoke, or remove, the trust and related ownership rights. This trust is recommended for young families with few assets but large life insurance coverage.

Irrevocable Life Insurance Trust

This arrangement puts the distribution of life insurance proceeds in the hands of a trustee. A trustee can be a lawyer, trusted friend, or family member.

Contact your Phil Klein Insurance Group agent in West Bloomfield, MI today to set up an appointment and to get a quote.