What’s your plan for your estate after you pass away? Do you have a will or trust? Have you discussed your goals with your children or other heirs? Or do you lack any estate planning documents?
 
If you haven’t yet planned your estate, you’re not alone. Nearly 60 percent of Americans lack a will, one of the most basic elements of any estate plan. ¹ A will is a simple and affordable document that lists who should receive which assets in your estate after you pass away.
 
There’s one other important basic component in any estate plan. It’s life insurance. Life insurance provides valuable financial relief to your dependents and heirs after your passing. It can minimize financial challenges during an already difficult period.
 
While it may not be pleasant to think about your own passing, the issue is too important to ignore. That’s especially true if you have dependents or other loved ones who may be financially impacted by your death. Below are a few ways in which life insurance can help your estate and your heirs.

Provides Cash for Heirs 

The days and weeks after a loved one’s passing can be emotionally draining, but they can also be financially challenging. Your heirs could face a wide range of bills, including final expenses for your funeral and possibly outstanding bills for any health care you received during your final days.
 
If you’re a financial provider for your spouse or children, they may also face the prospect of moving forward without your income. They don’t just lose you; they also lose your paycheck. That could make it difficult for them to maintain their standard of living.
 
Life insurance provides quick cash so they can overcome these challenges. Your death benefit is paid out in a lump sum to your designated beneficiaries. They can then use that money to pay bills, cover your final expenses, and even replace your income.

Helps You Maintain Control 

Perhaps you want to leave a legacy to your children and grandchildren, but don’t particularly trust them to receive a large lump sum upon your death. Maybe they’re too young to manage a sizable amount of money, or perhaps they’ve struggled with financial discipline in the past.

No matter your specific concerns, a trust is a great way to manage your legacy even after you pass away. When you create your trust, you can specify rules and guidance about how money should be managed and distributed to your heirs. You can specify that it’s distributed at certain points in time or when an heir reaches a specific age or life milestone.
 
How do you fund your trust? One way to do it is through life insurance. You simply make the trust the beneficiary of a life insurance policy. Then the assets are distributed to your heirs according to your rules. You provide a financial legacy for your loved ones, but still do it on your terms.

Minimizes the Impact of Probate 

Even if you have a will, your estate may still have to go through a process called probate. This is the legal process for finalizing an estate. During this time, your estate executor works with the local probate court to finalize outstanding items like taxes, debts, asset liquidation, the notification of heirs, and more.
 
Probate can be time-consuming and costly. If your estate is complex, it could take months before your assets are distributed to heirs. Your estate could also rack up thousands of dollars in legal fees and other costs, reducing the amount that goes to your heirs.
 
Life insurance avoids probate. It doesn’t go through the legal system. Rather, it’s paid directly to your beneficiaries as a tax-free lump sum. That means they get a benefit quickly, which they can use to pay bills or to simply enjoy your legacy.
 
Ready to incorporate life insurance into your estate plan? Let’s talk about it. Contact us today at Marshall Life and Financial Solutions, Inc. We can help you analyze your needs and goals and develop a strategy. Let’s connect soon and start the conversation.
 
1 | https://www.aarp.org/money/investing/info-2017/half-of-adults-do-not-have-wills.html
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency.
 
19150 - 2019/8/19

Planning your retirement strategy? Wondering where your income will come from in retirement? It’s likely that Social Security will be part of the mix. More than 90% of Americans age 65 and older receive Social Security benefits. In fact, for 48% of married elderly couples and 69% of unmarried seniors, Social Security represents more than half their income.¹
 
The average retiree receives $1,461 per month from Social Security.¹ While that’s a significant amount, it’s likely not enough to support a full retirement. If you’re like many retirees, you’ll need income from sources besides Social Security.
 
How much of a role will Social Security play in your retirement? And how much additional income will you need? To answer those questions, it’s helpful to know how your Social Security benefit is calculated.

How much can you expect from Social Security? 

The Social Security Administration can provide an estimate of your benefit amount. It’s driven by your career earnings and your age at the time you file. Generally, everything else being equal, higher career earnings lead to a higher benefit amount. However, your age at the time you file for benefits also plays a major role.
 
You are eligible to receive your full benefit when you reach your full retirement age (FRA). Most people have an FRA between their 66th and 67th birthdays. You can file as early as age 62. However, your benefit could be reduced by as much as 30% if you file before your FRA.²
 
You can also delay your filing past your FRA and increase your benefit amount. Social Security credits your benefit by 8% per year for every year you delay your filing past your FRA. This credit is offered up to age 70.³
 
Again, Social Security can offer an estimate of your future benefits. Also, a financial professional can help you determine how Social Security fits into your retirement strategy. You may not be able to control your career earnings, but you can maximize your benefit by carefully planning the timing of your filing.

How else can you generate retirement income? 

Even if you delay your Social Security and maximize your benefit amount, it’s likely that you will need some other form of income. Perhaps you have a defined benefit pension through your employer. Or maybe you can take withdrawals from your 401(k) or IRA.
 
You also may want to consider an annuity with a guaranteed* income benefit. These are tax-deferred vehicles in which you can potentially earn interest. However, many annuities also offer optional guarantees* that provide a guaranteed* income stream for life. No matter how long you live or how your annuity performs, you still receive income. That kind of guaranteed* cash flow could supplement your Social Security benefits and provide financial stability in retirement.
 
Ready to plan your income strategy in retirement? Let’s talk about it. Contact us at Marshall Life and Financial Solutions, Inc. We can help you analyze your needs and develop a plan. Let’s connect soon and start the conversation.
 
1 | https://www.ssa.gov/news/press/factsheets/basicfact-alt.pdf
2 | https://www.ssa.gov/planners/retire/retirechart.html
3 | https://www.ssa.gov/planners/retire/delayret.html
 
*Guarantees, including optional benefits, are backed by the claims-paying ability of the issuer, and may contain limitations, including surrender charges, which may affect policy values.
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency.
 
19151 - 2019/8/19