Education is a key component of the comprehensive planning we do for our clients. I focus on helping individuals and families understand what life insurance can do for them as part of their overall financial plan. From a big picture perspective, life insurance is an invaluable tool for providing peace of mind and financial support for your loved ones in the event of your untimely death. It can be a tool from birth throughout your retirement years.
Infants and Children
Many parents and grandparents purchase permanent life insurance for their children to lock in their insurability for their lifetimes. The policies have guaranteed premiums and death benefits, include the option to purchase additional coverage throughout the child’s lifetime without further underwriting and may include cash value accumulation.
We often recommend low-cost term insurance to lock in insurability, cover student loan and mortgage debt and provide financial security as these individuals transition to their careers and independent family units.
The Building and Saving Years Often some of the most critical years to own life insurance are as individuals grow in their careers, buy homes, start families and begin planning for long-term financial needs and retirement. The loss of an individual’s income through death can create immediate economic hardship for surviving family members. Again, we often recommend low-cost term insurance to make certain the family has “enough” to meet their on-going needs. This may also be a time to consider cash value life insurance that can meet needs beyond retirement. Cash value life insurance can provide tax-advantaged funds for college planning, retirement income or unexpected cash needs throughout your lifetime.
Preparing for Retirement
As you start putting the final pieces of your retirement plan together, we look at whether life insurance is still an important tool for you and your family. Often, you do not need as much life insurance at this time.
Life insurance can pay final expenses and any remaining debt to ensure that your survivors have sufficient resources to fund their retirement years. It can replace pension income and fund long-term care expenses. Life insurance can pay estate taxes and income taxes on tax-deferred retirement accounts that your children inherit. Life insurance can guarantee a legacy to your children and grandchildren or to your favorite charitable organizations. Life insurance is a great tool that may help you address your concerns throughout your lifelong financial planning continuum.