When creating your estate plan, you will be forced to make many planning decisions including insurances. You will consider various forms of insurance. Take a look at some of the information below to better understand the importance of obtaining the right kinds of insurance. If you have any questions, or if you need help selecting an insurance policy or creating an estate plan, speak with an estate planning attorney.
Life insurance – This type of insurance can allow you to provide for your loved ones, even if you are unable to do so with your current assets. The life insurance proceeds can be used to provide care to your family, pay future expense, and past debts. It’s important to purchase enough life insurance, so that your loved ones are always protected.
Life insurance is also used to create an estate, pay federal estate taxes, create an inheritance, equalize inheritances, and fund a buy-sell agreement.
Homeowner’s insurance – Many people don’t take the time to consider what would happen if they were to lose their home. A good homeowner’s insurance policy will protect you against damage to your home. This includes consider enough coverage for repairs and complete loss. Include coverage for replacement of contents, temporary living costs if your home is unlivable, and liability in the event someone is injured on your property or bitten by your dog.
Long term care insurance – This type of insurance can cover the costs of your future long term care needs. Long term care continues to be more expensive each year. You want to make sure that you have a plan in place so that you’re financially able to get the care that is needed. Each policy is unique so that you’re able to find the right policy that meets your individual care needs.
When you are updating or creating your estate plan, also consider disability and umbrella insurances. If you live in a geographically fragile area, consider applicable insurances such as earthquake and wind and hail.
Duffy Law Office is a member of the American Academy of Estate Planning Attorneys.