It is also important to know how to hold the life insurance. Often it is a good idea to hold the life insurance in an insurance trust because it will save estate taxes when the policy is distributed.
Siesta Key, FL (PRWEB) June 08, 2013
LegaLees’ attorney Lee Phillips has written an article on the importance of evaluating an insurance policy to help families understand that they have options when purchasing life insurance.
He notes, “Life insurance premiums may be one the biggest continuous cash drains for a family, and people need to understand how the insurance is written and why the agents may not be motivated to give someone the best value. Understanding the process, and the options, is the first step to getting the best value in a life insurance policy.”
It may seem odd to have an estate planning attorney writing about life insurance. However insurance is a vital piece in the complete estate planning picture. Not only can insurance help a family fund their inheritance, it can also be a great tax saving and money making tool for the estate. It is also important for a family to consider how best to hold (own) their life insurance.
As Mr. Phillips observes, “So many families just skip insurance, figuring they can save some money, however by doing this they miss vital benefits for their family as well as estate planning opportunities. Others may get a policy, but they buy a one size fits all policy without understanding how to get value for their money. This is also a mistake, because there are certain choices that must be included to give insurance the greatest asset protection and tax value. If the family does not have some guidance, they will miss many benefits and cost savings.”
Mr. Phillips continues, “It is also important to know how to hold the life insurance. Often it is a good idea to hold the life insurance in an insurance trust because it will save estate taxes when the policy is distributed. Also, everyone should make sure the beneficiaries are properly listed on the policy to avoid possible difficulties when the claims are paid.”
Mr. Phillips serves as a counselor to the Supreme Court of the United States. He is the author of 11 books, including his latest book Protecting Your Financial Future. He has written hundreds of articles for professional people to assist them in finding various strategies to use the law to protect their property, save taxes and make more money. He has given addresses at thousands of business seminars. He enjoys helping people apply the law, not only to provide asset protection and estate planning, but to use it to structure businesses and save taxes, helping individuals achieve success.
LegaLees was founded in 1982 by Lee R. Phillips. It is a legal self-help publishing company. It produces products designed to help people understand the law. Based on his own personal experiences, Mr. Phillips realized that people needed to be able to understand how the law works so they can direct their own legal professionals. He also saw that people who want to do their own legal work need to be shown how, not just handed a fill-in-the blank form. LegaLees has designed many products to help individuals structure their personal and business affairs. All of the products help the clients protect assets and prevent legal disasters that can strike at any time.