b'FOR YOUR PRACTICEContributed by Things you need to know about Shawn M. Johnson, ChFC , CLU, CLTCVice President, Business Developmentyour life insurance policy.Treloar & Heisel Wealth Management sjohnson@treloaronline.comIts important to review your life insurance periodically. You should consider your coverage amounts and coverage types and understand the ownership and beneficiary characteristics of both your personal and business policies. For those of you who may need a refresher, there are typically three parties to the life insurance policy: the insured, the owner, and the beneficiary. Personal Coverage. Personal coverage is typically set up to benefit a loved one. The primary purposes of personal life insurance are to replace your income or to provide a legacy. Typically, these policies are owned by you, so youre both We suggest youthe owner and the insured. The beneficiary may be a loved one, or it could be a trust. As the owner, you can change beneficiaries as needed, and its important consult the attorneyto contact your insurance advisor to update any beneficiary designations in the that created yourevent your situation changes.For US citizens, life insurance policy death benefit proceeds are typically business entityreceived income tax-free. However, when youre the owner of your policy, the policys death benefit may be included in your estate from an estate tax for advice on anperspective. With potential changes in estate tax laws, you may want to pay special attention to this and review or update your life insurance portfolio with a appropriate plan forlicensed advisor and review with an accountant and attorney.Your policy can also be owned by an Irrevocable Life Insurance Trust (ILIT). In your practice. this arrangement the ILIT generally becomes both the owner and the beneficiary of the policy. In most instances when your policy is owned by an ILIT you lose control of the policy and it becomes difficult to make changes in the future. The policys death benefit, however, may be excluded from your estate for estate tax purposes. If you have an existing policy and youd like to transfer the ownership AAP Periospectives| 22'