Frequently, the face value is reduced to reduce or eliminate the need for additional premiums to be paid. Except for those for whom insurance is unavailable or unaffordable, every individual's estate planning can benefit from some form of life insurance. Candidly, you cannot truly compare life insurance with other types of investments. Life insurance, including life insurance with investment components, is different primarily because it includes a death benefit that is immediately available. When cash is needed to pay the estate tax and other expenses associated with a person's death, investments such as securities and real property are not immediately available, and the sale of such assets when the market is down can deplete the estate even more than the amount of the cash needed.
Insurance is now more affordable than ever.
Of course, it is extremely important to purchase the type of insurance that meets your needs from a company that will be there when the insurance is needed. Your insurance advisor will be an important part of your estate-planning advisory team. In 2001, President George W. Bush introduced legislation to repeal the estate tax, but, as of the date of this memo, Congress had not acted on that legislation. Links within rushforth.net Updated 3 March 2001. All other rights are strictly reserved.