Life insurance can be an extremely important part of your estate

There are several significant reasons why:

• The proceeds from a Life insurance policy will be paid directly to the named beneficiary upon the insured’s death. Such proceeds do not have to go through probate in court, as required for property left through a will. Instead, the proceeds can be paid immediately upon official proof of death, providing ready cash for the needs of the family.
• For most people, there is considerable legal expense involved in settling the estate. Typically, combined debts and legal expenses can amount to 10-12 percent of the total value of the estate. By having adequate Life insurance, these expenses can be covered so that the balance of your estate is left intact for your heirs.
• The federal estate tax burden has been materially reduced by current laws, but state inheritance taxes could be a further drain. This can amount to 10-15 percent of the estate, depending on the state where you reside. Adequate Life insurance can provide income tax-free benefits to cover these taxes.
• Your Life insurance can often be arranged so that the proceeds paid to your beneficiary are totally exempt from federal estate tax, and also from the inheritance tax of many states.
• Collecting Life insurance proceeds is quick and easy for your beneficiary. The action required is to fill out a simple claim form supplied by your insurance company, accompanied by official proof of death. If there are no unusual questions regarding the covered person’s death, the money should arrive within two to three weeks.

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