In this episode, Dan and Ed discuss the most common mistakes federal employees make when purchasing and managing life insurance. They explain how to determine the right amount of coverage, choose the appropriate policy type, and properly manage beneficiaries to protect your family and assets. The conversation also covers long-term planning, estate considerations, and how to avoid costly errors in life insurance ownership.
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FedLife Podcast (Ep.155): 8 Life Insurance Mistakes Federal Employees Should Avoid
Join us as Dan and Ed review common life insurance mistakes, considerations for selecting the right coverage, managing beneficiaries, and strategies to help federal employees make informed financial decisions.
In this episode, you’ll discover:
- How to determine if your life insurance coverage is adequate for your family’s financial needs
- The risks of choosing the wrong type of life insurance
- Why reviewing your policy every three years is essential
- What happens when term insurance expires and renewal costs increase
- Strategies to avoid estate tax inclusion of life insurance proceeds
- The importance of naming trusts or custodians for minor beneficiaries
- Why naming your estate as a beneficiary can be risky
- How to use contingent beneficiaries to safeguard your policy
These policies have exclusions and/or limitations. The cost and availability of life insurance depend on factors such as age, health and the type and amount of insurance purchased. As with most financial decisions, there are expenses associated with the purchase of life insurance. Policies commonly have mortality and expense charges. In addition, if a policy is surrendered prematurely, there may be surrender charges and income tax implications. Guarantees are based on the claims paying ability of the insurance company. Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.
Source Article:
https://stwserve.com/how-to-avoid-the-8-most-common-life-insurance-mistakes/
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