For many people in Scottsdale, estate planning and life insurance go hand in hand. But during the economic downturn many decided that there was simply not room in their budget for the cost of a life insurance policy. According to an article in the Christian Science Monitor, the ownership rate for life insurance is at a 50-year low.

The current value of your potential estate can have an impact on life insurance decisions. Those who still have a number of years in the work force may not have yet had the opportunity to acquire a large pool of assets. If some tragedy struck, life insurance may be a very important source of income for their survivors.

For others who have relatively minor amounts of debt and a more substantial pool of assets, life insurance may not be as large of a factor in achieving their estate planning goals. This will also of course depend on the ages and situations of children and spouses.

Unfortunately for some, the decision whether or not to carry a life insurance policy may be based on short term economic realities rather than thoughtful long-term planning. In 2004, about twenty-two percent of households did not have a life insurance policy. The number without life insurance has now increased to thirty-percent. Almost a third of households that are not covered have minor children.

Life insurance will be part of a comprehensive estate plan for many Arizonans. But determining what role, if any, it should play is a question that should be addressed thoughtfully with an understanding of what other assets and debts are involved.

Source: Christian Science Monitor "Can you ditch your life insurance?" G. Jeffrey MacDondald, February 17, 2011