Life insurance offers unique, basic and essential wealth protection characteristics unequaled by any other product and experts agree that such protection is a fundamental part of any successful financial plan. It can help provide, in the event of an unexpected occurrence, security against the loss of assets – the hard-earned money you have so worked to acquire – and protection for those who depend on you financially.
All life insurance products have one thing in common: they provide cash to your family through a death benefit.
With a life insurance policy, you have the peace of mind that you and your loved ones have laid a firm foundation for your financial future. Without a life insurance policy, your best-laid financial plans could crumble before your heirs’ eyes. Worse still, your survivors could be left with burdensome debt. Consider what would happen if you passed away today. Would your family have money to pay your final expenses? Would they be able to meet the fundamental costs of living – such as medical bills, grocery costs, and mortgage payments? A life insurance policy can help position you to confidently answer ‘yes’ to all of these questions.
Certain life policies, such as permanent cash value insurance, can offer much more than just protection. They can provide living benefits that add extra dimensions to your financial plan. Depending on which policy you choose, life insurance can help you accumulate tax-deferred interest on cash values. These cash values can offset future educational costs, for instance, or serve as a supplemental funding source for your own retirement.
Life insurance, then, can be seen as a potential source of protection (through its death benefits to your family) and financial growth (through its cash value accumulation). Because matching the right insurance product to an individual’s needs and goals can be complicated, consider utilizing the services of a skilled financial professional. Such an individual can help determine exactly how much and what type of insurance is best for your personal financial plan.