Life insurance can be complicated. In order to help you better understand, here are several things you need to consider before purchasing your ideal life insurance policy:

What is the purpose of your life insurance policy? Perhaps you have dependents, such as kids or a spouse, that will still rely upon you and your financial income upon your passing. Or you have substantial debt that you do not want to leave a financial burden on your loved ones to care for. By determining the purpose of your insurance policy can help you to better understand what type of policy may be best suited for you and your needs.

Who is your beneficiary? Regardless of the type of policy that you choose, you will need to select a beneficiary who will receive the proceeds of your life insurance policy upon your passing, typically being a spouse, then your children. However, it can be more complicated, especially when you do not want to leave your money to minor children, in which case you may need to set up a trust for them.

Understand the taxes. While life insurance proceeds are free from federal income taxes, they can be counted as part of your estate and may be subject to estate tax. If you have a large policy, you may want to consider a trust that can keep the proceeds out of your estate.

Talk with your loved ones. Discussing your life insurance policy with your loved ones can be difficult, but can be an important conversation to have, especially when their livelihood may depend on it, also helping you to determine the specific needs of your life insurance policy.

Speak with an insurance agent. Nobody understands life insurance better than your insurance agent. If you need help determining what type of policy is best for you, then consult with your agent before you make any decisions.

Brazelton Insurance Group is an independent insurance agency that specializes in commercial, personal, life and health insurance. For more information and to see how we can help you with your insurance needs, contact us today!