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LIFE INSURANCE

Do I Need Life Insurance?

Life insurance has long been a part of estate planning in the United States. Although life insurance does not need to be a part of every person's estate plan, it can be very useful, especially for parents of young children and those who support a spouse or a disabled adult or child.

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Are life insurance benefits subject to the estate tax?

I have a life insurance policy through my employer. My concern is that if I die, the face value might become part of my estate because I own the policy. How do I protect my wife so that estate taxes don't grab a chunk of the benefit payment?

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Can we keep a child's money out of the hands of an irresponsible adult?

My husband named his 13-year-old daughter from a previous marriage as the sole beneficiary of his life insurance policy. He has also purchased savings bonds payable either to her or him, which are intended to cover her college expenses. Our concern is to safeguard against foolish spending by the girl's mother. Is there any way we can provide for this?

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