How Life Insurance Creates an Immediate Estate

Shawn Plummer

CEO, The Annuity Expert

When most people think about life insurance, they think about the peace of mind that comes with knowing that their loved ones will be taken care of financially if something happens to them. However, did you know that life insurance can also create an immediate estate? In this guide, we will discuss how life insurance can help you protect your assets and provide for your loved ones in the event of your death.

The Estate

When you purchase a life insurance policy, you are essentially creating a contract between yourself and the insurance company. In this contract, you agree to pay premiums to the insurance company in exchange for a death benefit that will be paid out to your named beneficiaries upon your death. The death benefit is typically equal to the face value of the policy, which is the amount of money that you would receive if you were to die during the term of the policy.

While the death benefit is certainly a valuable component of life insurance, it is not the only way that life insurance can create an immediate estate. Another way that life insurance can benefit your loved ones is through the use of accelerated death benefits.

Paying For Long-Term Care

Accelerated death benefits are typically available to policyholders who are diagnosed with a terminal illness and have a life expectancy of two years or less. If you qualify for accelerated death benefits, you can elect to receive a portion of your death benefit while you are still alive. This money can be used to pay for medical expenses, end-of-life care, or any other expenses that your loved ones may incur.

Supplementing Retirement Income

In addition to the death benefit and accelerated death benefits, life insurance also offers a number of living benefits that can be used to help you and your family during your lifetime. For example, many life insurance policies offer a cash value component that allows you to borrow against the policy’s death benefit. You can also use the cash value of your policy to pay premiums or to supplement your retirement income.


How Life Insurance Creates An Immediate Estate

As you can see, life insurance offers a number of benefits that can be used to create an immediate estate. If you are interested in learning more about how life insurance can benefit you and your loved ones, contact one of our life insurance agents today.

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Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.

The Annuity Expert is an online insurance agency servicing consumers across the United States. My goal is to help you take the guesswork out of retirement planning or find the best insurance coverage at the cheapest rates for you. 

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