Life insurance is something many people opt to have as they begin to age. It’s particularly common for people who have spouses and children, because they don’t want to leave their loved ones without the money they need following their death.
As you age, life insurance can — and perhaps should — be part of your estate planning. Life insurance can provide much-needed cash to your family, especially in cases where you pass unexpectedly.
Why is life insurance so important for estate plans?
Life insurance provides compensation that can help your loved ones pay off your debts and end-of-life expenses. The insurance may cover medical expenses, bills and funeral costs or be a major help for your loved one’s bank account.
Another thing to consider is that probating and administering your estate can be costly. Having insurance that kicks in following your death helps absorb those costs, so your loved ones don’t have to worry about coming up with the money to pay attorneys or other professionals.
Finally, consider life insurance as a way of equalizing your estate. If you have multiple heirs, it might be hard to divide all your assets equally. Fortunately, if you choose the right insurance policy, it will make up the difference for some heirs, so there is a lower risk of arguments among those who are left behind.
These are a few reasons to consider obtaining getting a life insurance policy. With the right policy, you can make your estate plan even stronger and continue to take care of those you love long after you have passed away.