Many people avoid discussing estate planning. Nobody wants to think about losing the people they care about. A life without you may be difficult to accept. However, it is critical to address it as soon as possible. Unfortunately, anything can happen in life.
While whole-life policies typically have higher premiums, they may provide investment opportunities as well as death benefits to those left behind. Consumers with large mortgages or young children may want to consider term life insurance, which is typically less expensive and provides coverage for a set period of time. Many term policies can cover a period of 10 to 20 years, providing some income after you die.
There are several other factors to consider for parents with young children. When planning their estate, they should consider who will care for their children if they die unexpectedly. A family member or best friend may be a good choice, but they should be properly vested.
“You can get someone who really cares about the child and takes care of them,” Frank Allen Jr., an estate-planning lawyer in Washington, says. “That’s something no one plans to do, but it happens.”
Those with significant savings or real estate may want to seek the advice of a lawyer when it comes to estate planning, which includes writing a legal will and documenting where your possessions are to be transferred.
Protecting your loved one’s financial future after your death may be one of the most important decisions you make during your lifetime.
A good place to start is by comparing life insurance quotes.