Life Insurance is not for everyone. There are two specific situations where you need to seriously consider life insurance.
The first situation is if you are in an estate tax bracket. Meaning, you have an estate that is above 5.43 million dollars. As an estate planning attorney, we utilize life insurance by putting it into a trust to pay the estate tax. This type of trust is called an Irrevocable Life Insurance Trust (ILIT).
The second situation is if you are a young couple and have small children or if you are about to have a child. It’s important to consider that if one spouse passes away, you may have to deal with the loss of income of that spouse or if there is a stay at home mom, you may have to deal with the loss of the primary caregiver for the child. In these kinds of situations we recommend looking at term life insurance and making sure that you have enough to cover the loss of a loved one.
If you do find yourself in one of these two situations, take the time to look into life insurance in order to protect your estate and your family.