​Why Your Estate Plan Needs Life Insurance

You want to protect the people and things you care about … now and after your death.

An estate plan that incorporates life insurance can help you do that. 

Estate plans help you decide how, when and to whom assets will be distributed after your death. Life insurance, unlike many other planning tools, helps protect those assets from excess income taxes. It also helps in a variety of other ways.

Help for you now
Life insurance allows you to:

• Offset income taxes on tax-deferred retirement plans like IRAs, 401(k)s, or deferred annuities your family would have to pay when inherited. That means your family can receive the full value of your savings.
• Leave a legacy, by providing a donation to your favorite charity after your death.
• Equalize the inheritance you leave to your heirs, especially if more than one family (or marriage) is involved. Example: A farmer wants his son to continue to own and operate the family farm after his death. He could purchase life insurance to provide an equal inheritance to his daughter, while keeping the farm intact.

Help for your loved ones later
After you die, your family members can use life insurance to:

• Maintain their current lifestyle.
• Pay taxes (without liquidating your assets).
• Carry out your estate-distribution wishes.
• Cover college costs and meet other future goals.

Learn more
Estate planning needs are different for everyone. Find a Modern Woodmen representative in your area to learn the role life insurance could play in your plan.