Life Insurance Planning
Should life insurance be part of most estate plans? If so, are there good rules of thumb on how much should be purchased?
Life insurance is an important consideration for any parent, particularly if the parent is the primary wage earner. If a parent passes away, life insurance can provide a source of financial support to replace the deceased parent’s income.
Some people also purchase life insurance to provide for the payment of debts and taxes at a person’s death. For example, a person may have a thriving business but if that person were to pass away, his or her assets, including the business, may be subject to a death tax. The estate must be in a position to pay for the taxes.
Life insurance can also be purchased on the life of a business partner. If the business partner passes away, the surviving business partner may need to purchase the deceased partner’s interest in the business.