Many Maryland residents overlook life insurance if they have other assets to support themselves in retirement. However, having a policy can ease some of the tasks that your survivors and executor must go through to settle your estate after your death. Consider the following advantages.
Why buy life insurance?
Life insurance helps your loved ones with various expenses when you pass away. After your death, your survivors must sort through your assets and liabilities. Having a life insurance policy can alleviate the difficulties of those estate planning tasks by giving them financial support when they are grieving. A life insurance policy can help your survivors with the following:
- Estate tax payment
- Business asset coverage
- Funeral and burial costs
Choosing your life insurance policy
Think about your needs and circumstances. Before you pick a policy, you’ll likely want to:
- Determine the coverage level needed
- Decide between term, universal and whole policies
- Get quotes from at least three providers
- Carefully go through the application process
- Choose your beneficiaries
Life insurance complements wills and trusts
Sometimes, people believe that life insurance policies will be part of their estate. Life insurance policies are payable on death to the designated beneficiary, so even if someone is the executor of the will, they will receive the insurance benefits no matter what. If you have life insurance, you already have one part of your estate plan in place.
Consider other aspects, too, such as wills and trusts to protect your money and provide income for your retirement years. You’ll also want to consider additional aspects like living wills and powers of attorney for healthcare and finances if you become unable to make decisions.