An elder law attorney at Biddinger & Bitzer helps families in Michigan’s shoreline communities to plan ahead for the future. One of the key ways that our legal team can help you is to work with you to make sure your family will be protected and provided for if something happens to you. For many people, providing for their families means purchasing a life insurance policy.
Do You Need Life Insurance?
Whether you need life insurance is going to depend upon whether anyone is dependent on you. If your children or spouse need your income, then you definitely need a life insurance policy. In fact, if you have a child, you should strongly consider buying life insurance coverage. If something happens to you, the policy that you had in place could provide funding for a guardian to care for your child since raising children can be very expensive. The money you leave for your child could also be used to provide for your son or daughter’s education so your child can go to college without going into a substantial amount of debt.
You may also need life insurance even if you are not actually earning any income at all. Just because you do not have a job does not mean you are not providing very valuable services to your loved ones. If you are a stay-at-home parent, for example, you are providing caregiving and household help. If you passed away, someone would need to take care of your children for you and would need to do all of the tasks that you are currently doing in your home. It would likely cost a lot of money for someone to take on the roles that you are currently filling, so you may need a life insurance policy to provide a death benefit to pay for these services. The same is true if you are caring for aging parents, who may need to hire a caretaker or move to a nursing home if you are not there to provide care any longer.
It may even be important to buy a life insurance policy even if no one is yet depending upon you, especially if you plan some day to have dependents who need you. If you buy a life insurance policy when you are younger and healthier, costs associated with the policy premiums will be lower. You also will know that you are covered so if you get sick later on in life, you won’t have to worry about becoming uninsurable and unable to get a policy when you need one to provide for your dependents.
Finally, buying a life insurance policy can make sense if you are in business with others. You could name your business partners as beneficiaries on the policy and the partners could use the proceeds from your death benefit to buy out your share of the business if they wish to continue operations without having your heirs or beneficiaries directly involved in company operations.
These are just a few of many examples of situations where the purchase of life insurance could be very important to you. There may be other circumstances that justify the purchase of a policy as well, which is why it is so important to get legal help from an experienced attorney to get advice on whether you should get covered.
Getting Help from an Elder Law Attorney
If you need life insurance, an elder law attorney at Biddinger & Bitzer can assist you in determining if you have a sufficient amount of coverage. We can also provide you with help on how to structure your policy. For example, if you are buying life insurance to provide for a disabled child, you could potentially cause a loss of access to means-tested Medicaid benefits if your child directly receives the death benefit when you pass on. Your child may also be unable to manage the money from the life insurance proceeds if he or she has a disability that makes money management impossible. The creation of a special needs trust could be advisable and you may wish the proceeds of the life insurance policy to go into this trust where they can be managed by a trustee of your choosing and where they will not count as disqualifying resources for purposes of Medicaid eligibility.
This is just one of many examples of how Biddinger & Bitzer can help you to make a smart choice on life insurance so you have the protections necessary for your specific family situation. To find out more about how our firm can help you, give us a call at (989) 872-5601 or contact us online today.