Most people know that life insurance can pay for funeral and other final expenses. It can also benefit you and your family in other ways. NE Arkansas, GTW Insurance has put together four of the ways life insurance can help you and your family that a lot of people don’t think about.
Life Insurance Can Pay Estate Taxes
Arkansas doesn’t charge estate or inheritance taxes but other states do. If you inherit property from one of the states that impose estate or inheritance taxes, you could owe them. The Federal estate tax charges 40% after an exemption of $5.7 million which includes property and investments. A life insurance policy can help pay taxes due after your death so your family won’t have to sell your house or other assets.
Help Replace Reverse Mortgage Equity
A lot of people are choosing reverse mortgages to help provide living expenses. If you plan to leave an inheritance and you have a reverse mortgage, a life insurance policy could cover the gap between equity in your home and the inheritance you want to leave.
Set Up a Special Needs Fund
If you have a family member with special needs who requires care after you’re gone, life insurance can help. You may also have children or grandchildren who want to go to college. Life insurance could reduce or eliminate the need for student loans.
Become a Life Insurance Trust
Life insurance policies can be placed into a trust so that the benefits will be used the way you specify. A life insurance trust can help to ensure the policy provides an inheritance, helps a family member with special needs, or pays for college.
Here at GTW Insurance serving NE Arkansas, we’re always glad to talk to you about how life insurance can meet your family’s needs.