“I know I need it, but I don’t want to think about it now.”
“I’ll deal with it later, it’s not a priority.”
These are two of the most common responses when the topic of life insurance comes up. Life insurance remains a product that many financial professionals agree should be the foundation on which people should build their financial goals.
Why? First, think about your loved ones. The primary benefit of life insurance is to provide for them, helping them meet daily expenses so they can continue the activities of daily life should the unexpected happen. “Proceeds from life insurance can be used by families to pay ongoing expenses, like credit card and mortgage bills,” says Patrick Egan, a retirement spokesperson with Thrivent Financial. “The proceeds can also help cover daily necessities like groceries, gas, and other expenditures and can also pay for college tuition and allow families to keep commitments to one another.”
Without adequate life insurance coverage, many families could be placed under great financial distress to meet the ongoing financial obligations of their new situation. Having financial resources available after a loss can give families the time they need to grieve and figure out what the future looks like.
Life insurance can also protect one’s spouse against sharp reductions in future pension and Social Security payments by replacing assets cut short by premature death. Careful preparation and reviewing of all your accounts with a financial professional can help you know about all your pension coverage and whether you are prepared for the future.
And it’s not just at home where life insurance can help. Life insurance can help business owners and others with significant assets to pass those assets to their loved ones in a tax-efficient manner. It also serves as an efficient tool enabling people to support nonprofit organizations through charitable gifts.
Life insurance may not be a popular topic, but the security it offers brings a level of comfort that many people can’t do without. In addition, many people will find that life insurance coverage can be a key component of a retirement program as they plan for their long-term financial goals. None of us can control whether we will have tomorrow, but protecting the people in our lives is something we can take control of today.