052: Estate and Financial Planning with Life Insurance

When it comes to life insurance, most of us think of it as a death benefit when someone dies too soon. However, when used strategically, it can do so much more. In estate and retirement planning, it can be used as a complementary financial tool to help you meet specific goals or help secure financial protection.

In a new episode of Absolute Trust Talk LIVE, Kirsten welcomes MassMutual Northern California Financial Planner, JP McDermott, MBA, ChFC, CLTC. With over 20 years of experience, JP is an expert Financial Planner helping clients plan for a comfortable retirement while leaving a legacy for their families. As we dive into this topic of estate planning, financial planning, and life insurance, we will discuss topics like how to pay estate taxes with life insurance, the value of life insurance in blended families, business, and how the election results may impact our planning. No matter where you are in the estate or financial planning process, this is an episode that everyone should listen to.

Big Three from Episode #052:

  1. Buy life insurance as soon as you can. You’ll never be as young as you are now.
  2. The right amount of life insurance depends on what you’re trying to accomplish in life.
  3. Life insurance helps estate taxes, blended families, businesses, charitable giving, even families with special needs persons.

Time-stamped Show Notes:

3:51 – We may see some changes to our federal estate and gift tax laws – even our income tax laws with a new administration. This is what listeners need to know.

5:42 – How can someone use life insurance to limit or the impact of estate taxes?

8:40 – How do irrevocable life insurance trusts help solve estate taxes?

11:29 – What is the importance of life insurance in blended families?

15:10 – Here are a few reasons why a business should own life insurance

17:15 – Life insurance is another great way to help with charitable giving. Here’s how.

19:15 – When is a good time to buy life insurance?

20:00 – How much life insurance is right for a person?

21:28 – Why is term insurance so much cheaper than whole life insurance or permanent?

23:53 – Is it possible to use life insurance to cover a debt you don’t want to leave to a spouse or loved one?

Resources/Tools Mentioned in Today’s Episode:


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