Protecting Your Financial Future in 2022
With the start of a new year, we’ve been reflecting on the past and looking ahead to the future. What do you see for yourself?
How have you considered not only what you want to accomplish, but how you will protect what you are building along the way? No matter what stage in life you’re in, wouldn’t it be worth it to have the peace of mind that no matter what happens, you and your family will be ok?
What better gift to give yourself and your family than making sure their futures are protected. Life insurance can do that.
When thinking about purchasing life insurance, here are a few things to consider.
Are you fully insured?
Do you have a death benefit that equals your economic life value? You can figure this out by looking at the number of years you have left to work along with your annual salary. Would you be able to fully replace your income in the event of your death? If not, then purchasing insurance to get to a more fully insured level would be a wise choice.
It can also deliver cash to pay for funeral costs, family counseling, unpaid medical bills, and other debt. This can be so valuable to allow for the grieving process to happen for your loved ones, without the worry of how they will make ends meet. This assures them that if the unimaginable does happen, they can go on to have the income to support the life you would have been able to provide if you had lived.
Insuring your family
Once you are fully insured you can look at buying life insurance for a child, whether it is your own child or a grandchild. Children may outgrow many other gifts, but the gift of permanent life insurance is one that can provide benefits throughout their lifetime. It can help fund college, be a down payment for a home, fund a wedding and supplement retirement. Look for a permanent policy that has cash value that grows over time and can be accessed by the policy owner.
There may be some restrictions when buying life insurance on a child, such as a limitation on the amount you can purchase. Some require you to own a certain amount of life insurance on yourself before buying it for a child, but the process to acquire insurance for a child is fairly easy, with little to no medical exams required. And often there are features you can add on that allow you to buy more insurance as they reach certain ages or meet specific life events such as marriage or the birth of their own child.
Buy early
The cost of a permanent life insurance policy may vary based on your age and health, but the earlier you purchase coverage the better. Costs are lower when you are younger and in good health. By buying life insurance early, you can lock in lower rates and secure insurance in the event health problems arise later on. Even if you start by buying term insurance, you can lock in coverage so that over time, you can convert this temporary insurance to something permanent without having to go through additional medical inquiry.
Having coverage for the long haul
The amount and time you will pay for this coverage can be determined by a variety of factors. Some policies allow you to pay for them for a limited period of time, for example, 10 or 20 years. Other policies may allow you to pay via a single lump sum of money. This makes for a great gift, as when the child gets older there may be no premiums to pay.
Don’t put all your hard work and effort at risk. Take the time to make sure the future you are building is protected.