For most, insurance is one of life’s necessities and also one of the most misunderstood financial products. Planning for your future with retirement plans, 401(k) savings plans and investments are all very important. But do you also have life insurance to protect your family financially if you die? Most people have coverage for their car, home, boat, or computer but many have not adequately planned for and invested in insurance to help their families cover a loss of income, funeral expenses, and other debt.

Your need for life insurance is affected by your stage of life and your need for protecting your income. As you take on more responsibility, your need for life insurance grows. In the event of your death, life insurance could pay off your mortgage, medical bills, funeral expenses, provide transition or replacement income for the surviving spouse, and pay for future expenses such as college expenses for your children.

How Epiphany Law Can Help

Attorneys are certainly not in the business of selling life insurance. At Epiphany Law our experienced attorneys pride themselves on recognizing how life insurance policies can help protect your family financially in the event of your death. Depending on your situation we can work with you to determine the different roles life insurance can play to ensure your family is protected and potential taxes are minimized.

An estate planning attorney can guide you on how to set up ownership and beneficiaries of your policy in regard to estate taxes. Epiphany Law will evaluate your life insurance as family and estate needs change throughout your lifetime to make sure your needs are being met.

Questions and Answers

Q. Why do I need to work with an attorney about life insurance?

A. Life insurance can play a vital role in estate planning. It is important to coordinate all aspects of life insurance with your overall estate plan. An estate planning attorney will be able to help you determine how your life insurance policy fits in with your other investments and assets in your estate plan. Also, an attorney is needed to make sure that both your insurance policy and your estate are set up properly to minimize estate taxes.

Q. Can I leave my life insurance policy to charity?

A. Yes! Many people leave life insurance policies to charities of their choosing. In fact, it can be a powerful estate planning tool to minimize hefty estate taxes. Since gifts to charity can be sheltered from estate tax, a gift set up through a life insurance policy can also avoid taxes in certain situations.

Q. Who should own your life insurance policy?

A. The correct owner and beneficiaries of your life insurance policy will depend entirely upon your estate plan. Ensure that all such decisions are made with consultation from your financial advisor and estate planning attorney.