What type of life insurance should I buy?
How is life insurance used for estate planning?
What is an irrevocable life insurance trust?
What is the best kind of life insurance policy?
What is second-to-die life insurance?
Life insurance can serve a number of purposes for the agricultural family. Besides providing for the continuation of income in the event of a breadwinner’s death, life insurance can:
- Provide cash for the payment of debts, funeral expense, probate fees, medical expenses, estate taxes, etc. Having cash to pay these expenses may prevent heirs from being forced to sell assets in order to pay these costs.
- Provide cash to children who are not inheriting a family farm/ranch as a means of equalizing inheritance with a child or children who are inheriting a family farm/ranch.
- Provide cash for funding a buy-sell agreement between business partners/shareholders. Life insurance proceeds are used to buy-out the deceased partner’s share of a business.
- Provide cash for wealth replacement for heirs when a Charitable Remainder Trust is used to avoid tax on the sale of farm/ranch property.
To view the Wealth Guide: Life Insurance: An Effective Estate Planning Tool for the Agricultural Family, click here
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