The Role of Life Insurance in Estate Planning in Georgia: A Strategic Overview


Speak with a trusted Probate Court lawyer in Cherokee County, Georgia.

Why Consider Life Insurance in Estate Planning?

Discover how Perigon Legal Services can assist you in integrating life insurance into your estate planning strategy in Georgia, ensuring financial security and peace of mind for your loved ones.

Author: Stan Faulkner, Founder, Perigon Legal Services, LLC

Mr. Faulkner is an experienced counselor and litigator with 15 years of experience, having held bar licenses in four states (Mo, Il, Ct and Ga). Stan Faulkner uses this experience and focuses his skills in the pursuit of assisting individuals in probate (trust and estate) matters, guardianships and conservatorships, estate planning, business disputes and contract disputes. Published on June 30, 2024.

Planning for the care of loved ones after you are gone can give you peace of mind. Estate planning involves several critical elements, including the disposition of assets, the nomination of guardians, and the incorporation of life insurance. Each aspect carefully connects, safeguarding your family’s future and ensuring that your legacy grows.

Life insurance is more than just a payout; it’s a promise of stability for those you hold dear. As a practical tool for financial security, it can cover outstanding debts, support ongoing living expenses, and contribute to future education costs, preventing the need to sell estate assets due to financial burdens.

We recognize the importance of integrating life insurance with your Georgia estate planning. It’s an approach that reassures you that, in the event of life’s unpredictable turns, the fruits of your labor will provide a cushion for your beneficiaries. Whether you own vast assets or have a more modest estate, life insurance is an essential component that can bring immeasurable comfort and security to your family in Georgia.

Understanding Life Insurance Policies

Life insurance protects your loved ones while also granting them the immediate financial support they need in your absence. Here, we unpack the different types of life insurance including temporary and permanent life insurance policies, revealing how they integrate with your estate planning needs.

Types of Life Insurance

The primary types of life insurance in Georgia are:

  • Term Life Insurance: Gives coverage for a fixed period. It is typically more affordable and ideal for temporary needs. It pays a death benefit without cash value if the insurer dies within the term.
  • Whole Life Insurance: Provides lifetime coverage and a death benefit as long as premiums are paid. The cash value component accumulates over time, and it is suitable for long-term needs such as estate planning.
  • Universal Life Insurance: Provides flexible premiums and adjustable death benefits with a cash value that earns an interest rate. It is ideal for those in need of flexible financial planning options.
  • Variable Life Insurance: It is investment-focused with death benefits and cash value tied to investment performance. It is suitable for those comfortable with investment risks and seeking cash value growth.

We at Perigon Legal Services understand the significance of these features. Our role is to guide you in making informed decisions to protect your family’s future.

Legal Considerations in Georgia

When considering estate planning in Georgia, understanding the state regulations on life insurance is essential for a solid foundation. Georgia’s laws set specific requirements and safeguards for life insurance policies. These are instrumental in defining the role such policies play within an estate plan. The Georgia Department of Insurance regulates life insurance companies and policies, ensuring their compliance with state laws for the protection of consumers. 

Insurance contracts may offer guaranteed interest rates and/or dividends the insurance company will pay on your premiums. It’s crucial that earnings on premiums are substantial before they can contribute to ‘paying up’ your policy. However, it is illegal in Georgia for promises of “paid up” life insurance to be based on values that are not guaranteed within your policy. In the instance of such a promise, evidence, such as a written note containing the promise made by an agent, may enable the state insurance department to assist.

To secure your loved ones’ financial interests, Georgia law requires that you choose a beneficiary who will receive the proceeds of your life insurance. Naming the right beneficiaries ensures that the life insurance proceeds reach the intended parties without unnecessary complications. In cases where you do not have an existing life insurance policy, only individuals with an insurable interest can purchase a policy to insure your life.

Strategic Uses of Life Insurance in Estate Planning


Individuals may secure a life insurance policy for several reasons, including:

  • Providing for Family and Dependents: Our loved ones often depend on us for financial stability, which makes life insurance indispensable. Life insurance can ease the burden on your family if you are no longer there to support them.
  • Business Succession Planning: For business owners, the continuity of their life’s work is paramount. Life insurance can be instrumental in business succession by furnishing liquidity for buy-sell agreements or ownership transfers, securing a seamless handover to the next generation or chosen successors.
  • Trusts and Charitable Giving: In special cases, life insurance can support philanthropic endeavors or reinforce complex estate structures. You can create a living trust, transferring ownership of your insurance policy to the trust. By creating an irrevocable life insurance trust, you can minimize federal estate taxes and maintain control over insurance proceeds. 

Choosing the Right Policy

When choosing a life insurance policy for estate planning purposes, it’s essential to consider your personal financial situation, long-term goals, and the potential needs of your dependents. Policies vary widely, and what suits one household in Georgia may not be the best for another. It’s crucial to evaluate the benefits each type of policy offers and consider the potential impact on your estate’s liquidity and tax obligations.

To ensure you choose the right policy that aligns with Georgia estate law and your estate planning objectives, consult with legal professionals and financial advisors who understand your unique circumstances and the laws of Georgia. These advisors can help you calibrate the policy’s details, from the death benefit amount to the intricacies of beneficiary designation, so that your life insurance strategy is fully integrated with your overall estate plan.

Consult with Perigon Legal Services for Further Guidance


When it comes to determining the integration of life insurance in your estate plan, the complexities can be multifaceted. Life insurance serves not just as a tool to provide liquidity upon one’s passing but also as a strategy to address any potential estate tax, ensuring assets are not depleted upon transfer to heirs.

Why Perigon Legal Services?

  • Experience in Estate Planning: With a solid foundation in the intricate domain of estate planning, our estate planning attorney is well-equipped to tackle the challenges that come with incorporating life insurance into your estate plan.
  • Tailored Solutions: Each estate is unique, and we work to craft strategies that align with your individual circumstances.
  • Georgia-Specific Knowledge: Navigating estate laws specific to Georgia, our guidance ensures compliance and optimization based on local regulations.

Services We Offer:

  • In-depth policy reviews
  • Coordination with other estate planning documents
  • Identifying opportunities to maximize the insurance policy’s benefits

At Perigon Legal Services, our dedication is to provide a structured approach that considers every facet of your estate, ensuring your legacy endures as you intend. By consulting with us, you can receive a thorough review of your existing plans and tailored advice specific to Georgia’s legal landscape.  

For a personalized analysis and deeper comprehension of how your life insurance policy functions within your estate plan, contact us today.

Schedule a Free Consultation

Use the form below to tell us about your legal inquiry, and we’ll call you back to schedule an appointment. Please be as detailed as possible. You may also email or call us to make an appointment. Our general response time is one business day.

* Please do not include confidential or sensitive information in your message. In the event that we are representing a party with opposing interests to your own, we may have a duty to disclose any information you provide to our client. *


Shape 1 min6400 Powers Ferry Road NW Suite 386
Atlanta, Georgia 30339