At Richardson Tribe we use life insurance in estate planning for a variety of reasons all dependent on the clients personal situation and goals.
If you die before your mortgage is repaid, then the responsibility to complete payments falls to someone you love. Life insurance enables you to be proactive about ensuring those you care for can meet those financial commitments after you’ve gone.
For many clients the peace of mid that a policy brings should the worst happen to a parent is invaluable. We deal with families in the Probate process and the peace that a good policy brings to them at the most vulnerable time is great.
Insurance policies are quick to pay out and enables families to survive whilst the probate process carries on.
Another reason people may decide they need life insurance is Inheritance tax, it has often been very hard for families to settle tax bills after death as the estate can often be frozen due to probate. Bills can run into tens of thousands of pounds, which can make a significant dent in your children’s inheritance. However, if you were to buy a life insurance policy that covered the tax bill, they could enjoy everything you intended them to receive.
You can also have the policies written into trust to ensure your family are also better protected for the future from unforeseen events such as divorce.
Insurance can become an expensive option in later life, but we often use it as a tool for peace of mind up until clients reach retirement age.