Family Insurance Planning
If there was ever an example of a financial product that equates to taking bad-tasting medicine, life insurance would fit that description. Yet in most cases, we all know that life insurance is incredibly important in order to protect our families from potential catastrophic financial disaster.
But life insurance is only one part of a comprehensive family protection plan. If you think you’ve got this part of your financial life covered, consider this question: When planning to care for minor children (or young adult children) in the event of an unexpected death, have you listed your children as beneficiaries on your life insurance? If your answer is yes, we recommend that you consult with an estate planning attorney. As an example, Ruthie and I have minor children. And through our trusted estate planning attorney, we have language in our wills to create a trust in the event that we both die. But what funds the trust? If you answered: the life insurance, you’re correct. But to have the life insurance fund the trust, we need to “point” our life insurance to the trust. And we do that by naming our trust as the contingent beneficiary. It’s entirely possible that your estate planning needs may differ but it’s our experience that most folks don’t have these steps planned out. And if there’s one thing we’ve learned, it’s that “postmortem” planning does not usually work out very well.