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In This Article, I’m Going To Talk About How Life Insurance Is Useful For Solving Estate Related Concerns For Blended Families
You want to get life insurance as part of a blended family. What we mean by blended family is that kids have been brought in from previous relationships on one or both sides.
You need to figure out how life insurance can solve potential issues when either one of you passes away. Issues about the surviving estate and who gets what regarding the heirs to your assets.
As you can imagine this can be a problem if it’s not taken care of well in advance with reasonable planning. Luckily the issue does not have to be complicated.
Today’s Topic Overview:
- Why Life Insurance Is Useful For Blended Families
- Circumstances In Which Life Insurance Is Useful For Blended Families
- Example Rate Charts
- Top 7 Reasons People Buy Term Insurance
- Stories From The Field
- Case Study Examples
- Protecting The Wealth Of Your Surviving Spouse And Your Blended Family
- Inheritance Equity
- Retaining Respect Between Family Members
- Next Steps
Why life insurance is useful for blended families
Life insurance is useful for blended families because it better defines estate issues. A parent passes away. One of the many concerns that blended families (husbands, wives, natural and stepchildren) have is determining who gets what.
Some kids may feel that is absolutely necessary to receive all the assets of their father. The second wife may feel she’s more inclined to have the first right to those assets. Even if those assets were accumulated prior to their marriage.
Let’s say you, as a husband and father, have a total net worth of $500,000.
You feel that it’s important to leave behind some money to take care of your second wife. At the same time, you don’t want to ruin the relationship you have with your children. This is a considerable concern to have and one that life insurance can easily solve.
To get a no obligation quote and speak to an expert in the field, give us a call at (888) 626-0439. You can also use the message board on this page to send us a request. We will respond using your contact details within 24 business hours.
What can you expect as far as their inheritance goes? Your assets might not be liquid. They may be hard assets that produce an income. You want to retain that income-producing capability for your wife. At the same time, you want to make sure that an inheritance is left intact to your children. A life insurance policy is the perfect solution to do that.
You can leave the hard assets to your wife. Then, take out a life insurance plan (either for term life or permanent life insurance). Make the children the beneficiaries of the plan. You’ve now determined how much coverage you want to have enforced. You’ve equitably split the proceeds so that everybody is happy.
Example rate charts
Term Life Insurance Coverage – 10 Year Term – $100,000 in Coverage
Term Life Insurance Coverage – 10 year Term – $250,000 in Coverage
Term Life Insurance Coverage – 10 year Term – $500,000 in Coverage
Term Life Insurance Coverage – 10 year Term – $1,000,000 in Coverage
Rates For $10,000 In Burial Insurance
Rates For $25,000 In Burial Insurance
$150,000 Whole Life Insurance, Life Pay
$250,000 Whole Life Insurance, Life Pay
$50 a Month – Guaranteed Universal Life Insurance
$100 a Month – Guaranteed Universal Life Insurance
$150 a Month – Guaranteed Universal Life Insurance
Protecting the wealth of your surviving spouse and your blended family
Life insurance is a great tool for solving these serious, life-altering estate issues without permanently disrupting relationships. You protect the wealth of your surviving spouse. Their financial situation is not dramatically altered to the point where they become destitute. Your children are also taken care of with an inheritance. They can feel secure.
Your surviving spouse in your blended family, your children, all the people that you love don’t need to be affected financially by your death. You can do all this with a life insurance plan.
This is the cause for a lot of problems in relationships between blended families. When my grandfather passed away he had a sizable estate. It was in the forms of stocks, bonds, cash, and some land. He also married for the second time in his seventies.
At one point in time, he had promised the children their distribution of the inheritance. At his passing, there were issues for the wife as well as the children on who would get what. This caused stress and concern among family members. Life insurance would have solved this.
One aspect of the stress was trying to sell my grandfather’s retirement home. It was a unique home. Unlike a lot of different homes, it took several years to pay off.
One of his sons was struggling financially. His profession was at a low point and he desperately needed the inheritance money. The solution to this would have been to put some kind of life insurance plan in place.
It would have provided liquidity to the estate. It would have allowed for alternative options resulting in a more equitable distribution of the estate to the survivors.
Life insurance can do a good job of making sure that the equity is inherited by the families.
If you are curious what your rates might look like, please give us a call for a free quote (888) 626-0439. You’ll speak to a friendly representative who can explain what your options might be as well as answer any questions you might have. If you would prefer to send us a message instead, simply use our contact us box found on this page.
Top 7 reasons people buy term insurance
1.Term insurance is affordable
If you are on a tight budget, term insurance allows you to get quality coverage at an affordable price. Compared to other types of insurance, term insurance is one of the most inexpensive types of coverage.
If your primary goal is to replace your income, term insurance is a great option. Most financial experts recommend getting 10 times your annual income in coverage.
One of the great things you can do with a term life insurance plan is fund your 401K or other retirement savings so that if you pass away, that money can continue to grow.
If you have a family that you want to take care of financially, term insurance is a great way to ensure they have financial stability should you pass away sooner than expected.
We all have unique financial obligations. Term insurance can be tailored to meet the length of time your financial obligations last. So for example if you have a 15 year mortgage or a 10 year bank loan, you can get term insurance for that particular length of time.
6.Pure insurance need
One of the greatest things about term life insurance is that it serves one purpose – to pay a death benefit to your beneficiary when you pass away. There are no added costs or extras. Term insurance is straightforward and meets the simple need for coverage.
7.Exams are optional
Many years ago exams were a requirement to get any kind of life insurance, but that is no longer the case. Nowadays you have the option to do a non-medical exam. It’s easy to apply with a non-medical application. Underwriters simply rely on your doctor’s records to get information on your health.
Stories from the field
One of the things we pride ourselves on here at Buy Life Insurance for Burial is our ability to get our clients affordable as well as high quality life insurance.
For life insurance to work as intended, it should pay out the maximum death claim. But unfortunately there are insurance companies out there that sell life insurance that doesn’t do this. The following story is a reminder of how important it is to get first day coverage whenever possible.
Early on in my career, I met an older couple in their 50’s who had been disabled for some time.
Though the husband had adequate coverage, it had never occurred to him to get coverage on his wife. Because she was starting to have more health issues, he knew it would be better to get something in place as soon as possible than wait and let more time pass.
He came to us to see what his wife might qualify for and I was happy to tell him she could get first day full coverage, which he was very pleased about. About three years later I got a call that this gentleman’s wife had passed away from cancer. Despite his loss, he was relieved to hear that her life insurance coverage would pay a death benefit within a matter of weeks.
There was enough assurance on our end that the funeral home was willing to go ahead with the funeral and burial with the promise of a future payment. The gentleman didn’t have to worry about coming up with the funds and had peace of mind in knowing everything would be taken care of.
I’ll never forget him thanking me and telling me how much he appreciated everything we did to get his wife first day coverage. It was one of those incidents early in my career where I had spent many a year selling insurance but not necessarily seen the benefits of it.
I realized how helpful life insurance can be under incredibly difficult situations where money is the last thing you should have to worry about and how important it is to get first day coverage if at all possible.
Case study examples
Blended Family and Three Kids
If you have a blended family and recently added to that family with the birth of a child, you probably understand the parental instinct to ensure your family is protected. A couple recently came to me under these exact circumstances looking to get final expense coverage. The husband, Mr. Thompson, was 40 years old and had just celebrated the birth of his third child.
He was looking to get enough coverage to cover his final expenses and provide a small income to his wife and kids should he pass away unexpectedly.
The only problem was that Mr. Thompson had previously been declined by his local insurance agency in his small hometown. He was generally in good health, so he wasn’t sure why he had been declined, but he saw his phone call to us as a last ditch effort to get some kind of life insurance in place.
We looked at a number of options for Mr. Thompson and I am pleased to say we were able to approve him for quality final expense coverage at a price that met his budget. Though we can’t promise the same outcome for every applicant, we do our best to provide as many options as possible to our clients to meet their unique goals.
10 Year Bank Loan
A gentleman recently called us to say he had decided to expand his business and had gone to his bank to inquire about getting a business loan. The bank had informed him they would only provide him with a loan if he took out a 10 year term life insurance policy to cover the life of the loan.
This gentleman was in overall good health, but he was taking medication for depression. We looked at a number of options and were pleased to be able to offer him first day coverage despite his antidepressant use.
Every application is unique and we cannot guarantee coverage, but we certainly do our best to find coverage for our clients by shopping among a number of high quality providers.
Retaining respect between family members
This is one of the most important aspects to why blended families should own life insurance. To why they should be thoughtful about how the life insurance itself is designed. It should equitably distribute an estate among family members in blended families.
Many times in a blended family the husband and wife will feel that distribution of an estate should be equitable based on its inherent value. This seems fair on the surface of it.
It can, however, pose a problem if one beneficiary receives liquid assets and another receives hard assets. Hard assets take longer to distribute and to liquidate into cash.
The problem also with hard assets is that their value can fluctuate. The assets could actually result in a lower value over time if the market is on a downward trend.
This can leave a lot of bitterness and frustration among family members. This can be towards yourself as the person providing the estate and also with siblings.
Your sibling or family member gets the more readily available liquid assets. You are stuck with the albatross, stuck with the assets that are harder to liquidate. This may not provide the kind of inheritance that you want or need. What’s the solution?
Go beyond talking to your family and understanding what their desires are in regards to their inheritance. Supplement these conversations with life insurance. It will help to provide liquidity to an estate, solving some of these hard asset concerns.
Life insurance is a perfect product to retain the kind of respect for each other that you want your family members to have. Often money can cause divisions. It doesn’t have to be that way. Plan ahead of time thoughtfully in order to avoid this particular problem.
If you’re interested in qualifying for life insurance as a parent in a blended family, visit my website. You can go to buylifeinsuranceforburial.com and grab a free quote.
I do ask that you message me first. You can do that by clicking the contact box; the one at the top or the bottom, and send me a quick message. Or just call me. The best way to reach me is (888) 626 0439, and speak with me live.
Thanks for reading this article. I hope you have found it useful. If you would like to find out more about what type of insurance would be best for your blended family, please give us a call at (888) 626-0439.
We’d be happy to speak with you further about your options and answer any remaining questions you have. You can also send us a message using the contact us box found on this page and we will be in touch soon.