To determine the amount of insurance you need, you should consider your entire estate plan.
Proper estate planning can give you a better idea of how to best provide for your loved ones after you have passed.
Perhaps you have a $1.5 million term life insurance policy.
Depending on your unique circumstance, this will cover the bills if you pass away but no more.
According to a recent article in NJ 101.5 , titled “Do you need more insurance?”, you may need to consider other options if leaving an inheritance to your children is important to you.
To start, inventory your assets, including real estate, investment accounts and retirement accounts.
Consider the amount you will need for retirement, then determine how much would be left to pass along to your children.
If you have enough for an inheritance, great!
If not, you may want to consider more insurance.
When purchasing insurance, you will need to determine what type you want.
Term insurance may be great while you are in the workforce, but may not be ideal in retirement depending on premiums.
Universal life insurance may be a good option for leaving an inheritance.
Permanent insurance premiums may be greater, but they can accumulate cash value. If need be, you can use this while you are still living.
Ultimately, you will want to consider what you can afford now and in the future.
As you plan the best means of leaving an inheritance, you will want to work with an estate planning attorney who can review your specific situation and help you meet your goals.
Oftentimes, an experienced estate planning attorney will know top life insurance professionals to counsel you regarding the proper type and amount of insurance.
Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.
For more information about estate planning in Overland Park, KS (and throughout the rest of Kansas and Missouri), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.
Reference: NJ 101.5 (June 27, 2016) “Do you need more insurance?”