In certain situations, cash value life insurance can be strategically used to accomplish estate succession goals.

Provides Cash that May be Used to Pay Estate Costs

To settle an estate, certain costs are incurred that often must be paid for in cash. A life insurance policy may be purchased to help pay for these expenses.

The benefits of a life insurance policy are paid in a timely fashion. Often this provides beneficiaries the opportunity to pay federal and state estate taxes, attorney's fees and other estate related expenses with the proceeds of the policy.

Another benefit of using a life insurance policy in this way, is that when the policy is purchased outside the estate, policy proceeds generally are  received income tax free.

Avoiding Probate

When settling an estate, beneficiaries may face probate court proceedings. This process simply insures that the estate is distributed properly and legally, but it also makes the value of the estate public record, and can be very time consuming.

Proceeds from a life insurance policy pass directly to the beneficiary or beneficiaries without being subject to probate court. This helps the beneficiary get cash in a timely manner and keeps policy proceed amounts from becoming public record.

Contact us to discuss how life insurance could help meet your financial goals.