Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards

Life Health > Life Insurance

Why empty nesters need term life

Your article was successfully shared with the contacts you provided.

When boomers’ babies grow up and move out, it may be tempting for some couples to not renew term life insurance policies. This is a mistake according to the Insurance Information Institute.

“Having life insurance is important for estate planning,” says Dr. Steven Weisbart, senior economist at the Institute. He notes that the estate tax exemption was phased out for 2010, but will be reinstated next year. “Unless Congress passes new laws between now and then, the tax will be reinstated in 2011 for estates of $1 million or more,” he said. “Besides the federal estate tax, many states levy taxes at death and in some cases the threshold is lower than the federal number. If your estate is large enough to be subject to federal and state estate taxes, life insurance can help provide the money to offset these taxes.”


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.