Life insurance is more than just a financial safety net—it’s also a powerful estate planning tool. Whether you want to replace income, fund a trust, or equalize inheritances, how your policy is structured matters more than most people realize.
Here’s what Louisiana families need to know.
What Life Insurance Can Do in Your Plan
- Provide immediate cash to pay debts or funeral costs
- Replace income for surviving spouses or dependents
- Fund a trust for minor children or special needs beneficiaries
- Equalize inheritances when one child inherits a business or property
- Offset estate taxes for larger estates
Beneficiary Designations Matter
Life insurance passes outside of your will—so whoever is listed as the beneficiary gets the money, regardless of what your will says.
Make sure:
- Your beneficiary designations are current
- They align with your overall estate plan
- You don’t list minor children directly (use a trust instead)
Use of Life Insurance Trusts (ILITs)
An Irrevocable Life Insurance Trust can:
- Keep the policy out of your taxable estate
- Protect proceeds from creditors
- Provide structure and oversight through a trustee
This is especially helpful if you’re leaving a large policy to young or vulnerable heirs.
Funding Your Trust With Life Insurance
If you have a revocable living trust, you can name it as a contingent beneficiary. This gives your trustee access to life insurance proceeds immediately—without going through court.
We’ll Help You Integrate It All
At Oak Grove, we make sure your life insurance supports your overall goals—not conflicts with them. We’ll review your existing policies, suggest structuring options, and integrate everything into a seamless plan.
