Mid-Year Reminder: Review Your Insurance and Beneficiaries

Estate planning encompasses many important elements, and insurance is one of the most powerful tools for protecting your family’s financial future. It’s easy to say, “I’ll get to that later,” especially when it comes to reviewing older insurance policies and beneficiary designations. However, it’s important to regularly discuss with your Apella advisor how your insurance coverage and beneficiary choices align with your overall financial plan. With mid-year approaching, now is the perfect time to revisit these details.

Insurance is often purchased with a specific goal in mind, such as funding a child’s education, replacing income, paying off debt, or offering tax-deferred savings for those in higher tax brackets. However, just because a policy was the best option at the time of purchase doesn’t mean it remains the best option today. For example, a term policy nearing expiration or a cash value life policy might be eligible for an upgrade or exchange with more attractive benefits. Reviewing current market options can help ensure your coverage still supports your long-term goals and maximizes the benefits available to your loved ones.

Currently, 13 U.S. states impose an estate tax¹ with exemption thresholds lower than the federal level before estate taxes are owed, and five states levy an inheritance tax.² Even with a well-crafted estate plan, you may still face liquidity challenges when paying estate taxes, especially if a significant portion of your wealth is held in retirement accounts, which are included in your taxable estate. Without sufficient liquid assets, heirs may be forced to sell valuable property, such as a family home intended to be passed down through generations. Insurance can provide the liquidity needed to meet these obligations; help preserve your legacy.

Occasionally, the media shares stories of families missing out on insurance benefits because the policyholder failed to update their beneficiary designations, sometimes leaving the funds to someone they no longer intended to receive the benefit. To avoid such oversights, it’s essential to regularly log in to your insurance provider’s portal or contact the company directly to confirm that both your primary and contingent beneficiaries are current.

Taking the time to review your insurance policies and beneficiary designations is a small step that can have a significant impact. Don’t wait. Schedule a conversation with your Apella advisor today to ensure your insurance planning is aligned with your estate and financial goals.

Sources:

1. States With Estate Taxes
2. States With Inheritance or Estate Taxes (2025 Guide) – Forbes Advisor

Disclosures:

Apella Capital, LLC (“Apella”), DBA Apella Wealth is an investment advisory firm registered with the Securities and Exchange Commission. The firm only transacts business in states where it is properly registered or excluded or exempt from registration requirements. Registration with the SEC or any state securities authority does not imply a certain level of skill or training. Please note the material is provided for educational and background use only. Moreover, you should not assume that any discussion or information contained in this material serves as the receipt of, or as a substitute for, personalized investment advice. All data is from sources believed to be reliable but cannot be guaranteed or warranted. 

No current or future client should assume that any discussion or information contained in this material serves as the receipt of, or as a substitute for, personalized investment advice. As with any investment strategy, there is the possibility of profitability as well as loss.

Apella Wealth does not provide tax or legal advice and nothing either stated or implied here should be inferred as providing such advice.

Apella Wealth does not provide insurance and nothing either stated or implied here should be inferred as providing such services.