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insurance
life insurance policies
amount of money
stamina
circumstance
Estate Planning Insurance
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An effective estate plan is one that protects and caters for the needs of your loved ones, now and in the future. With a good estate planning insurance, you will be able to distribute your property the way you want, how and when you want as you pay the minimum tax and expenses. You will notice that a proper estate planning insurance can only cause the smallest likelihood of a family feud.

With a seasoned estate planning insurance attorney, you can develop a solid estate plan that will ensure the future is bright for your loved one. Here is a case of Fick and Mary. The couple both meets with a seasoned estate planning insurance attorney. During the meeting, the attorney discovers that Fick has got life insurance policies that amount to providing $300,000 to Mary should Fick die. It is discovered that the total cash value of the policies are $280,000. The cash value is the total amount of money that will be paid to Fick if he decides to turn in the insurance policies while he is still alive. So, it is clear from this illustration that good life appears to await either of these spouses, depending on the prevailing conditions.

Lawyers can create the Wills, Trusts, Powers of Attorney and property transfers in order to make estate planning insurance perform as they want it to be effective. But, you know what? These documents cannot always save in every circumstance.

The problem here is that Fick draws income from a 50% survivor benefit so if he dies, Mary's standard of living will fall and he may not be able to keep up with the payments of the house, since she can now receive only half of his pension income. In other words, Mary, who is likely to survive Fick, may not receive enough life insurance proceeds to replace the income she needs in order to stay in her beloved home when Fick dies. And to further worsen things, Mary may not have the stamina or skills to go back to the workplace.

The solution here would have been for Fick, or the qualified financial advisor, to know this potential problem and exchange his insurance policy for a new estate planning insurance policy. The new estate planning insurance policy will provide enough money for Mary to live on if her Fick, her husband, dies.

Financial estate planning insurance advisors are not only trained to protect retirees, they also know the tax code under Section 1035, that will allow Fick to exchange his old insurance policy for a new estate planning insurance policy having to do with a higher death benefits and lower cash value. There does not have to be any payable tax at the time of exchange. Although Fick is using his untaxed earnings in his estate planning insurance policy to buy something of greater value to him!


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