Life Insurance Vs. Medical Power Of Attorney

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1) Have a life insurance policy that is not a condition of your employment. Purchase a life insurance plan from an outside financial services firm. This allows you to have a security blanket in case for some reason your employers’ life insurance believes you are uninsurable. Having a separate life insurance policy outside of the one provided by your insurer allows you to structure it in a way that it will escape your gross estate. Married couples can give an unlimited amount to each other with no wealth transfer tax punishments.

Life insurance policies are typically taxed as part of your own estate if you own the policy when you die. In contrast, if you are not the policy owner, the proceeds are not considered part of your estate when you
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However, a will is only useful when a person is on their deathbed and is used to declare your desire to have or not have not have life-saving measures taken if there is a slim chance of recovery. A power of attorney on the other hand covers all health care decisions and lasts only as long as you are incapable of making decisions on your own. It is often a good idea to have both a will and medical power of attorney to ensure every possible situation is…show more content…
A power of attorney can be general, granting broad authority over all of your medical and financial affairs, or it may be limited, giving your designee a defined set of responsibilities only in certain situations. A general power of attorney may be written to last for a period of time or indefinitely. The power of attorney ends when you die and is not a substitute for a will. You can authorize your power of attorney to such things as sign checks and tax returns, enter into contracts, buy or sell real estate, deposit or withdraw funds, run a business, or anything else you do for yourself. A power of attorney can be broad or limited.

A physician’s directive or living will is a form designed to help you communicate your wishes on medical treatment in the future if at some point you are unable to make your wishes known due to illness or injury. A Directive to Physicians goes into effect only when your physician has determined that you have a terminal or irreversible condition and are unable to make your own health care decisions. You can also change or cancel your Directive to Physician at any time for any reason

The biggest difference between a physician’s directive and a medical power of attorney is that a physician’s directive tells doctors whether to make life-saving treatment if your condition is life-threatening or terminal. A medical
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