Life Insurance as Part of a Comprehensive Financial Plan
September is National Life Insurance Awareness Month, which makes it an ideal time to check on your coverage! Life insurance shouldn’t be thought of as an extravagance, but rather a must-have for each family member. (Yes, even your children.)
Life insurance is an important piece of a well-drawn financial plan. Let’s explore its necessary inclusion.
Life Insurance as Financial Planning
It may not seem like insurance fits in the same genre as financial planning, but the two really go hand-in-hand. As you plan your financial future - which probably includes some bigger purchases down the road, your kids’ college education, and your well-deserved retirement - the years beyond your lifespan should also be considered.
Few of us want to consider a day when we’re no longer on this earth, but doing so is one of the greatest gifts you can leave behind for your loved ones. Whether your passing is timely or unexpected, chances are that you will have loved ones who outlive you. Financial obligations will also outlive you, and life insurance is one way you can take care of them.
Insurance as a Financial Safety Net
All solid financial plans have a variety of products built in. A whole life insurance policy can build in value and become an asset in your widely varying portfolio. Though they can come with some fines or penalties to “cash out” (much like a 401(k)), life insurance policies can be an asset you cash in on, before you die.
Secure the Financial Future Beyond You
Another way that life insurance can make financial sense is by giving you a say in the future finances of your loved ones. You can protect your family, a spouse, a child, or another loved one with a great life insurance policy. A life insurance payout can care for them even when you are gone.
It isn’t just your heirs that can benefit from your intelligent foresight. With many life insurance policies, you can also designate funds for charitable giving. Not only can your name and memory carry on in your legacy of giving.
Life Insurance as a “Tool in your Financial Toolbox”
Life insurance is a financial tool that belongs in all toolboxes. It can be a safety net during your life that you may need to seek its value to make ends meet in tough times. It can also be a way to secure your family’s financial futures long after you’re gone. Even your favorite charities can be a part of your lasting legacy with sensible life insurance giving.
If you are ready to introduce this helpful tool into your financial toolbox, click here.
The cost and availability of life insurance depend on factors such as age, health, and the type and amount of insurance purchased. Before implementing a strategy involving life insurance, it would be prudent to make sure that you are insurable by having the policy approved. As with most financial decisions, there are expenses associated with the purchase of life insurance. Policies commonly have mortality and expense charges. In addition, if a policy is surrendered prematurely, there may be surrender charges and income tax implications.
