If you don't know who Yul Brynner is, look up the classic "Westworld" or the musical "The King and I". He died from lung cancer in 1985. This is his message to anyone who smokes. Please heed his warning.
Too often, most families and businesses overlook life insurance beneficiary designations.
Please note I stated designations, not the beneficiaries themselves!
One consideration that can be easily used are Trusts. You do not have to be wealthy to put in a basic trust. One type of trust could be an Irrevocable Life Insurance Trust (ILIT). Here is how it works:
The insured, being the grantor, would gift the required premiums each year to the ILIT. The insured has no ownership in the life insurance policy.
Then, a person who ideally can be held without any financial interest to the ILIT, is named the trustee.
The ILIT is particularly valuable when the life insurance policy could be pierced by the government as a source of funds, such as long term health expenses. It can also help young beneficiaries to receive much needed funds for their support and education. Also, an ILIT can help reduce estate taxes because it is not in the insured's estate.
There are other valuable trusts that can be set up, with the help of a qualified family/estate attorney.
Please contact my office and we can approach your specific needs.
You’re never too old to think about your future, along with your loved ones. Don’t be afraid to take the next step and prepare yourself!
Are you thinking that life insurance isn’t important for your oncoming future? Jamie Hopkins, a professor of retirement at The American College, has different ideas. The following article was published in Forbes Magazine to prove the importance of life insurance and how purchasing life insurance will benefit you when the unexpected comes knocking. Take a read!