We meet with many clients and prospective clients to discuss their life insurance needs. One common thread is the lack of any estate planning. Most people equate estate planning with the wealthy.
Yes, the wealthy need estate planning but don’t be fooled, so do the rest of us. What is Estate planning? It can be very simply having an updated will, advanced medical directive and power of attorney.
Why do you need estate planning?
- Your children are getting older and moving out on their own. You are downsizing and preparing for retirement. Your estate planning documents are probably outdated. You need to meet with an estate attorney and update your documents
- You have young children and life insurance. You don’t have a will or the will was done before you had any children. You need to update the will so you can update the guardian of your children, decide who will be the trustee of the life insurance proceeds, and make plans for a special needs child among other things. Without an updated will the courts will need to get involved to protect the children. You need an updated will to make sure your wishes are followed in the event of you premature death.
- You are separated, divorced or remarried. You need to make sure your will is updated to match your current situation. When a couple divorces there are many issues with their children that need to be addressed. Life insurance beneficiaries need to be discussed to protect your children.
We am not an attorney or do I give legal advice. We do work with many estate attorneys so if you need a referral to one I can help you out. But, reviewing life insurance policies we see many things that make me cringe like naming minor children beneficiaries, naming a brother or friend who will be your children’s guardian the beneficiary of your life insurance proceeds and trusting caregivers to manage the large insurance proceeds. Caregivers may be great with helping to raise your children but they may not be the best managing money. You need to have these discussions with an estate attorney and you need to meet with us to review your life insurance.
Why you need a life insurance review:
- Your life insurance agent may not have met with you in a long time and may not even be in the business now.
- Do you have the proper type and amount of life insurance for your needs now?
- Are your beneficiaries listed now proper for your situation today? You may still have an outdated beneficiary.
- Did you update all your life insurance policies including your employer paid life insurance and retirement plan beneficiaries?
Contact us today for a life insurance review even if we are not your current life insurance agent.