Estate planning involves quite a few steps, and it's important to start planning well ahead of time. One step that people most often think about when it comes to Austin estate planning lawyer is life insurance. What type of life insurance should you buy? The answer to this question is often highly dependent upon many different factors. However, what you might be surprised to find out is that when it comes to estate planning, many financial professionals would recommend the least amount of coverage that is still going to cover your final expenses.
You see, life insurance can be a decent investment vehicle in some ways, but your money is better off somewhere else. That being said, you should consider buying term life insurance for the amount of coverage you need. If you have your final expenses covered, then you can focus your other money towards other financial vehicles. When it comes to planning out your estate, you will have beneficiaries listed for those other investments, and that will benefit them more than the insurance products.
Sure, a life insurance policy can pay out a large sum of money, but life insurance companies are in the business of making money. They aren't going to pay out 100k to every person who simply puts in only 5k over a lifetime. Moreover, that 5k would pay better dividends somewhere else.
That isn't to say you should be skipping over life insurance when you're planning out your estate. Put that money aside to make sure your family isn't having to spend their own money or inheritance money in order to cover those final expenses. While 5,000 dollars might not cut it, you're not going to need that one million dollar life insurance policy either, are you?
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