THE ROLE OF INSURANCE AS AN ESTATE PLANNING TOOL
Among the biggest estate planning mistakes we can make is overlooking what a final illness can do to our net worth…and what it can mean to our heirs. It can be devastating! But a lot of potential damage can be avoided by using insurance as an estate planning tool.
One tragic scenario: Howard and Beth spent a lifetime working, raising a family and building their estate. By retirement, they had a net worth of several hundred thousand dollars. Between this and Social Security, they lived comfortably. Their plan was to enjoy their golden years and, someday, leave a tidy nest egg for their children and grandchildren.
Then Howard developed a debilitating illness. The medical bills piled up, and Medicare covered much of them, though certainly not all. They cut corners as Beth became a full-time caregiver. But as Howard's condition deteriorated, the task became too great for Beth. She had no alternative but to put Howard in a nursing home.
By the time of Howard's death nearly three years later, the couple's finances had been devastated. Were it not for assistance from her children, who themselves were facing the challenges of raising their own families, Beth would have been left in poverty. At her death several years later, there was nothing remaining for her family to inherit except a few family heirlooms.
The real danger: This scenario could have been different. While we cannot predict what events will befall us, we can nonetheless prepare for their possibility.
We can help protect our loved ones by recognizing the important role insurance can play in our estate planning. For example:
Insurance can play a key role in your estate planning. Most of all, it can help guarantee that the plans you make will not be undone by a final illness or other unexpected occurrence. See your insurance agent for more information.
READ OUR FINANCIAL
I get tremendous gratification from encouraging people to focus clearly on their future final success and security.
Larry Brasel, President