Factoring Insurance into Your Estate Plan - dummies

Factoring Insurance into Your Estate Plan

By N. Brian Caverly, Jordan S. Simon

Part of Estate Planning For Dummies Cheat Sheet

Insurance is vital for estate planning: It helps protect your current property, things you hope to attain in the future, and the gifts you hope to leave behind. Take a look at how insurance affects your estate and what types of insurance to consider for your estate planning:

  • Life insurance is a critical part of your estate planning, so make sure that when you purchase a new policy or change an existing one, you look at the rest of your estate planning to get the most benefit from your life insurance.

  • Many estate-planning advisers concentrate on life insurance. But you need to factor in many other types of insurance, such as the liability portion of your automobile and homeowner’s insurance.

  • Your life insurance policy may be an estate tax trap if you don’t take appropriate measures, such as setting up an irrevocable life insurance trust.