How to get life insurance and plan your estate? That was a topic recently discussed by two close friends and business owners. Ross, a 50-year-old manufacturing industry executive, sits down for lunch one day with long-time friend George, a 68-year-old small business owner now considering retirement. As they spent time catching up on each other’s lives, estate planning came up. Here, we listen in on their conversation.
“Yeah, I just came down here to visit my mother,” Ross shares with his long-time friend, George. “Sort of giving Courtney a little break, you know?” The pair met years before, when Ross walked into the offices of G & A Manufacturing, the most prominent and prestigious corporation in their industry. As a 21-year-old, fresh faced intern, Ross was at the bottom of the corporate ladder. George took a genuine interest in him, becoming first his mentor, and eventually his friend. Ross always appreciated George for his kindness in those early days; years later, he still sought him for important advice.
George nods in agreement, smiling. “Ah, yes. How’s Courtney these days?” he asked.
“Good. She’s real good. We’ve been working together day and night on the business to wrap it up for sale, as well as on our various charitable commitments. Sometimes when I talk to her, it’s easy to see she needs a break, so I take that four-hour trip down here to give her… what do women call it? A little ‘ME-time?’”
George chuckles a bit. “I know what you mean. So, is the buyer financing in place?”
Problem: taxation of wealth.
“Yeah, it is We are all set to close. Now I have to think about paying a hefty estate tax. My net worth is going to increase considerably, even after all taxes from the sale are paid. I need to make sure the kids can pay Uncle Sam after Courtney and I are gone.” George nods, prompting Ross to continue. “Having that heart attack two years ago really ‘woke me up’, George. So, I started looking for life insurance coverage as soon as I was released from the hospital. I had no IDEA how tough it would be! It’s like companies keep saying, ‘Nope. Not with this medical history.’”
George interjects, “Yeah, companies can be pretty stringent with their requirements these days. I had the same problem recently. I read about estate taxation in Denis Clifford’s estate planning book and started the process. I, too, sought to get a policy. Apparently by their standards, at 68 with my health history, you’re an old geezer and nobody would take a chance on me.”
How to get a low rate with a history of serious illness?
Ross smiled at the joke, but the look of concern soon returned. “So, what do we do now?”
“Glad you asked,” George chimed right in, not missing a beat. “I asked some other buddies of mine who, like me, own small businesses, are looking toward retirement, and are trying to get their financials in order.”
Ross perked up, now sitting at the edge of his seat. “And what’d they tell you?”
“Well, it’s a little uncomfortable, so a lot of us put it off, Ross. But you need everything in writing, you know that. Have your attorneys draw up a will, as well as Power of Attorney, in case you’re sick and can’t tell your family what you want.”
“Okay,” Ross replied. “What about the life insurance?” He looked glum. “I really would rather my kids not have to sell properties just to pay a tax bill!”
How to get life insurance and plan your estate? It takes the right broker.
“They won’t have to!” exclaimed George. “My buddies referred me to a broker who specializes in tough cases. He can help you, Ross — I’m gonna recommend you to him. Listen, he knows how to choose the right carrier. He’ll fight to get it done for you, even if you’ve had problems before. Plus, he is licensed in 48 states, so if you and Courtney decide to retire to Florida to be closer to family, you won’t have to find a new agent.”
“Wow, George! I knew I could count on you. I’ll give him a call today.”