A lot of people who do not have estate plans fail to take action because they do not have a significant store of resources to pass along. If you are single and no one is depending on you, this is understandable, but there are reasons why everyone should have a plan in place.
This being stated, if you are married, an income replacement vehicle is a must. The necessity is magnified if you have children, and life insurance can fit the bill.
Term Life Insurance
One of the two most commonly used types of insurance is term life. As the name would suggest, this type of coverage remains in place for a certain prescribed term. You decide on the length of the term when you get the policy.
Term life is typically used as a relatively short-term income replacement solution, so few people will obtain coverage for the maximum term. The insurance has no cash value as long as you are living, and this is negative on the one hand, but the premiums are quite low.
To give you an idea, a super preferred (very healthy) 40-year-old female would pay an average of $282 a year for $500,000 of coverage for a 20-year term according to Nerd Wallet. For a male, the average cost is $334 annually.
Clearly, the odds are in the insurance company’s favor when someone takes out a term life policy when they are relatively young. At the same time, what is the value of your family’s well-being if something were to happen to you? It is not worth the risk when the coverage is so affordable.
Whole Life Insurance
The other type of insurance that is most widely utilized is whole life insurance. When you pay the premiums, a portion is dedicated to accumulating a cash value. After you have paid into the policy sufficiently, you can take a loan against the cash value or withdraw the funds.
Since it has value as an investment vehicle, the premiums are much higher than term life insurance premiums. For a very healthy 40-year-old woman, the average annual premium is $5,937 for $500,000 of coverage, and the figure is $7,028 for a man of the same age.
Inheritance Balancing
In addition to the income replacement utilization and the death benefit as a legacy enhancer, life insurance can facilitate inheritance balancing.
To explain through the use of a simple example, we will say that John has a thriving construction business, and he has two children. His daughter has a business degree, and she has helped John run the business throughout her entire working career.
John’s son decided to go in a different direction. His daughter is going to inherit the construction company, which is his most valuable piece of property, but John wants to leave equal inheritances to his two children.
To balance the inheritances, he could make his son the beneficiary of a life insurance policy that will pay an amount that is equal to the value of the construction business.
Buy-Sell Agreements
Partners in small businesses can use seminar page, and when you identify the session that works for you, follow the simple instructions to register.
Ready to Act Now?
Our doors are open if you have decided that you would like to work with a Westport or Glastonbury, Connecticut estate planning lawyer to put a plan in place. You can send us a message to request a consultation appointment, and we can be reached by phone at 860-548-1000.
Mr. Nirenstein is licensed to practice before the courts of the State of Connecticut and the United States District Court. He is a member of the Connecticut and Hartford County Bar Associations, and the Estate and Probate, Elder Law, Business Law and Real Estate Sections of the Connecticut Bar Association.
- Connecticut Estate Administration: 5 Things You Need to Know About Probate - August 18, 2026
- High-Net-Worth Estate Planning: Strategies to Preserve Your Wealth - July 30, 2026
- How to Use a Living Trust to Stagger an Inheritance - July 23, 2026
Avoiding the Pitfalls: Why Estate Planning Shouldn’t Wait
( By appointment only )