From a young age we feel the responsibility of protecting our family income under any circumstance, especially the passing of a wage earner. We spend years paying premiums for our life insurance coverage because at the time we submitted to the underwriting process there was an obvious need for this coverage.
However, as life happens the original need for this coverage may disappear. Is this type of coverage still appropriate for you? You may want to ask yourself whether there still a place for life insurance coverage on your life? Will it be paid to your estate?If so, it will be included in the total estate value and therefore subject to probate fees and distribution according to instructions in your Will.
If you name a direct beneficiary no creditor or other body can access those funds upon death of the insured. Many people own life insurance to cover eventual taxation on their registered assets or capital gains taxes on investments or other holdings. Is your Estate value sufficient to cover this tax bill or do you have planned gifts in place to reduce or eliminate this taxation?
You may be able to use your policy to reduce taxes against your estate while making a significant gift to charity. Call one of our partners at ADVISORS with Purpose (1-866-336-3315) to discuss the best way to deal with all aspects of your estate – this service is complimentary, confidential, and completely independent of Help Lesotho.