Typically, if you've been paying premiums over a number of years, your life insurance has a meaningful cash value. Your children may well be independent and making their own way, now. You and your spouse, we hope, have built a retirement plan that will allow you to live comfortably.

But when you talk to your financial professional about structuring your retirement portfolio, don't forget to be sure you take insurance needs into account. Depending on your situation, you might benefit from continued or even increased coverage - for estate tax purposes, and because special circumstances might arise that could devastate your savings or estate.

Although it may be tempting to reap the benefits of the accumulated cash values of your permanent insurance policies, remember that the amount you take now will be deducted from the death benefit that you planned to pass on to your heirs.

Life Insurance and Estate Planning

Your Life Insurance policy can be a powerful estate-planning tool. With an AXA Equitable policy, the benefit is usually paid without delay - this can help your heirs pay estate taxes, funeral expenses and other bills without having to liquidate part of your estate.

Life insurance proceeds are usually income tax-free and can be set up to bypass probate. Your financial professional can help make sure your insurance program is structured so that the proceeds from your policy won't add to your estate tax liability.*

A long illness is always a possibility that must be considered. If that should occur, massive health expenses could decimate your assets, or be passed on to your spouse or children if you die. Also, a surviving spouse may be unable to manage alone and have to move in with other members of the family - putting a significant financial burden on them.

For more detailed information on estate planning visit our Transferring Your Estate page in our Life Events area.

AXA Advisors does not offer tax or legal advice. Consult with your professional tax/legal advisors regarding your individual circumstances.