Author: admin

At InsPeak in Arlington, TX, we help our clients get the coverage they need for all the different seasons of life, including death. While it can be upsetting to ponder how your family might provide for themselves after you pass, it’s crucial that you think about this aspect of planning the future before it happens.

While you can try to get a life insurance policy for yourself to provide for your family, you may have questions about whether you can give a gift to a loved one who keeps on giving by gifting them a life insurance policy. It’s best to research all your options. Even though each life insurance policy has unique terms and limits, we can offer some general insight into how you might be able to answer those questions.

Can you give life insurance as a gift?

Since life insurance can be so useful and provide a level of peace for someone who is worried about their family struggling financially after they leave this world, you might think there’s no better gift in the world than it. Although life insurance can be helpful, it’s not always possible to gift it. If the loved one to whom you want to give the life insurance policy doesn’t know about the life insurance policy or consent to it, you won’t be able to gift it to them.

Before you can give life insurance as a gift, you need to gather some necessary things like proof of insurable interest, a physical exam, consent from the recipient, and other pertinent materials. Someone will also need to be responsible for paying premiums to keep the policy active.

Schedule A Consultation Today!

For more information on our life insurance policies at InsPeak in Arlington, TX, call our office today!

A death benefit is the amount of money paid out to a beneficiary upon the death of an insured person. There are often tax advantages, and your InsPeak representative would be able to give you more specific details. 

Life Insurance & Death Benefit: What  You Need To Know

Life insurance is not a requirement for residents of Arlington, TX, but many decide to invest in this instrument to aid the survivors they leave behind. A named beneficiary can be a spouse, adult child, or almost any person. You can also leave your estate to a trust or a charitable organization. 

It’s important to keep your insurance up to date through any significant life changes, like the birth of a child, getting married, or obtaining a divorce. Arlington, TX minors can be designated as beneficiaries but will often need to have a guardian or a trust appointed over their inheritance for a specified time.

Death benefits can come in lump sum payments, annuities, or installments, and this can be at the behest of the insured party or decided by the recipient after the insured’s passing. Beneficiaries can sometimes decide to have monies allocated, for example, into a retirement account, though these decisions will change the way in which taxes are assessed. 

Life insurance premiums must be kept current for a death benefit to be paid, and the beneficiary is often required to provide the insurance company with proof of death. Generally speaking, a life insurance policy is one way to leave funds while avoiding probate, a sometimes lengthy legal process that can generate costs of its own and delay payments. 

Contact Us For More Information

InsPeak works hard to provide you with the insurance package to meet your needs. Our knowledgeable agents can be reached by visiting us online, calling, or stopping by the office, and we invite you to do so today!