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Why do you get life insurance? It may be because you understand that tragedy can strike in a moment. Or perhaps you may want to make sure your family is taken care of after you’re gone. When you decide to get life insurance, you’re essentially looking beyond yourself. Sometimes, however, circumstances change, and you have to make changes to your policy to ensure your goals are achieved.

Life insurance helps provide you and your family with peace of mind for your future needs.

Insurance payouts may cover mortgage, car payments, and other ongoing debts so that your family can sustain a comfortable standard of living.

Here are six reasons to consider for buying life insurance:[1]

1.To pay funeral and burial costs

2. To cover children’s ongoing expenses

3. To replace lost income

4. To pay off debts

5. To buy a business partner’s share

6. To pay taxes

Consider an Irrevocable Life Insurance Trust (ILIT).<

An ILIT is a trust that owns a life insurance policy and helps people minimize their estate taxes. This year the estate tax threshold is $10 million in value per estate. By designating your estate—rather than a person—as the policy’s beneficiary, you make it an asset.

Once you set up an ILIT, you can’t make changes or close it out. When you or your spouse die, your death benefits pay directly into the trust. From there, your estate beneficiaries (children, grandchildren, etc.) receive regular, tax-free payouts from the ILIT instead of a taxable lump sum.

Reexamining your insurance needs.

Is there a time in your life when you no longer need life insurance? For example, your children are grown, your debts are paid, you’re retired, your savings are adequate, and retirement income levels are sustainable.

How do you determine your life insurance needs at different stages in life?[2]

If you’ve achieved your retirement goals and built robust savings, you may not need life insurance coverage or you may want to reduce it. However, before you make changes, review your finances closely to see what options are best for you.

Examine pension and other retirement funds to make sure proper survivor designations are in place and sufficient benefits will be available. A minor income reduction, for example, can significantly hamper a survivor’s lifestyle and ability to keep pace with ongoing expenses.

You may need life insurance to cover peripheral financial expenses, such as estate taxes, retirement distribution fees, or charities. Owners of larger farms or businesses may need additional coverage to pay unanticipated taxes or other fees to avoid losing the properties.

Long-term care later in retirement may cost thousands of dollars per month. Long-term care insurance may provide the bridge to help people pursue successful retirements. Life insurance may help offset or cover potential medical expenses or maintain care insurance payments.[3]

You have several options that are worth exploring that may help you streamline your insurance needs.

If you would like to discuss your current financial needs or review your current policy, we’re happy to talk.




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Please remember that past performance may not be indicative of future results.  Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Dechtman Wealth Management, LLC [“DWM”]), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful.  Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions.  Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from DWM. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. DWM is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the DWM’s current written disclosure Brochure discussing our advisory services and fees is available for review upon request or at

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