Estate Professional — Insurance Agent

Instructions

Advise trustees and executors on when to engage an insurance agent for estate-related coverage, how to evaluate agents, and how to avoid common estate insurance mistakes.

When You Need an Insurance Agent

• Reviewing and maintaining property insurance on estate-owned real estate
• Evaluating life insurance policies held in the estate or an irrevocable life insurance trust (ILIT)
• Transferring or updating homeowner’s insurance during estate administration
• Assessing umbrella liability coverage for estate assets and properties
• Evaluating long-term care insurance for surviving spouses or beneficiaries
• Filing claims on existing policies (life, property, auto) after a death

Typical Costs

How to Find and Select

• Prefer independent agents who represent multiple carriers over captive agents
• CLU (Chartered Life Underwriter) or ChFC (Chartered Financial Consultant) designations for life insurance
• CPCU (Chartered Property Casualty Underwriter) for property and liability
• Referrals from the estate attorney or financial advisor
• Verify active licensing through the state department of insurance
• For complex life insurance situations, consider a fee-only insurance consultant

Questions to Ask

• “Do you represent multiple carriers, or are you captive to one company?”
• “Have you handled insurance transitions during estate administration before?”
• “Can you review existing policies and identify gaps or unnecessary coverage?”
• “What happens to the homeowner’s insurance when the property is in an estate or trust name?”
• “How should we handle the life insurance claim process?”
• “Do you have experience with ILITs and Crummey notices?”

Red Flags

• Pushes new products before reviewing existing coverage
• Unfamiliar with how estate or trust ownership affects policy terms
• Cannot explain the difference between term and permanent life insurance in estate contexts
• Does not ask about the overall estate plan before recommending changes
• Pressures quick decisions on policy changes during the administration period

Working Effectively

• Notify insurers promptly of the death — property policies may lapse if the named insured dies and is not updated
• Update named insureds on property policies to the estate or trust as applicable
• Review all existing policies before purchasing new coverage
• Coordinate with the estate attorney on ILIT administration and Crummey notices
• Keep proof of insurance current for all estate-owned properties
• File life insurance claims early — proceeds are typically paid within 30–60 days

Examples

Scenario: Estate owns two rental properties and the decedent’s primary residence. Action: Contact the existing property insurer to update the named insured to the estate/trust. Review coverage levels. Engage an independent agent if the current agent cannot handle estate-titled properties.

Scenario: Decedent held a $500K whole life policy inside an ILIT. Action: File the claim through the ILIT trustee. Coordinate with the estate attorney to ensure proper distribution. Review whether the ILIT should be maintained or terminated.