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Trust/life insurance

By Terry Savage on September 01, 2019 | Insurance

Ms. Savage: I just retired from CPD. The group life insurance policy is not a great option to continue. Any recommendations on term life? I am 63 with a son 19 in college can I take 20 years? In addition he is my beneficiary on accounts/will. Do i also need trust? I have a 20 year mortgage left.

I have admired and followed your career on all topics. You are respected and your opinion valued!

Terry Says

Thanks for your nice note.  I suggest you contact Byron Udell at Accuquote — at 800-442-9899.  They are based right here in the Chicago area.  If you are in good health, I’m sure he can find you a policy at a better price than employment continuation life insurance.   And yes, likely 20-year term will be cheapest, but I trust Byron completely (he is the expert source in my new book coming out this fall).

As for the trust, you don’t need an irrevocable life insurance trust to hold this policy.  That’s for huge estates, over $11 million.  BUT,  and being a police officer,  (and by the way,  congratulations on retiring healthy, and sincere thanks for serving our city), I’m sure you  have kept your estate plan up-to-date.  That might include a Revocable Living Trust, just to keep things easier to manage.  Then you could make the trust the beneficiary, allowing your successor trustee to distribute the proceeds when/if it happens!

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