How Life Insurance Works in Divorce
Protecting Your Children Pt. 2
If divorce makes you a single parent, you need adequate life insurance on yourself to protect your children. To determine the minimum benefit amount, calculate how many years you have until your youngest child turns 18 (or, if you want to be extra safe, 21) and multiply this number by your annual income.
For example, if you make $50,000 per year and your youngest child is six, a death benefit of $600,000 replaces your income until that child is 18. A $750,000 benefit sees the child through until he is 21. In an era of rapidly increasing college costs, choosing the larger benefit amount is prudent as long as the premiums are not too oppressive.
At Taroff & Taitz, LLP, we understand your need to keep certain assets out of your taxable estate. That is why on your death, your life insurance policy could be funneled in to an insurance trust, this makes sure that your children will get the most benefits out of your policy. Taroff & Taitz, LLP’s expert estate planning attorneys are uniquely qualified in trust administration. Contact Tarroff & Taitz, LLP to secure the future for your loved ones.