Q&A with MoneyGeek on Navigating Life Insurance and Estate Planning
February 27, 2023
How can life insurance be used effectively in estate planning? Cody Moore, a Wealth Advisor with Wealth E&P, sat down with MoneyGeek to discuss some questions on navigating life insurance and estate planning:
Q: “Why is life insurance an important component to estate planning?”
Cody: “Life insurance can be a great tool to ensure you take care of those you leave behind or leave behind a legacy you desire for your family. In the worst-case scenario that you prematurely pass away, the return on life insurance can be phenomenal.”
Q: “What type of life insurance is best for estate planning? What special considerations should you take into account when choosing a type of life insurance?”
Cody: “It really depends on the situation. The person who needs to insure themselves, so their family has sufficient assets to survive versus the person who is using life insurance as a legacy and tax strategy because they have a large estate are very different needs. In most cases, you do not need to look any further than a low-cost term policy. A consideration you should take into account if someone is advising another form is how big the commission is going to be off this product.”
Q: “How can you maximize the use of life insurance in estate planning?”
Cody: “Life insurance proceeds are a unique opportunity to leave tax-free proceeds to your heirs.”
Q: “When is the right time to use an irrevocable life insurance trust?”
Cody: “If your estate is nearing the federal estate and gift tax exemption of $12.06 million in 2022 (increasing to $12.92 million in 2023), then it is time to meet with your Advisor and Estate Planning Attorney.”
Want to learn more about life insurance and estate planning? Check out the full article feature, including more tips and key advice, on MoneyGeek’s website here.
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