How often do you think about dying?
Personally, I rarely think about it because it is WAY too difficult for me to imagine missing all of the precious moments with my kids.
I can’t fathom how difficult it would be for my husband and children to deal with the emotional trauma of losing a wife/mother. On top of that, the financial burden that would be left from my absence – going from a double income family to a single income. How would my husband pay the mortgage (and all of our other bills) while trying to save for the kids’ college and his own retirement? It is seemingly impossible.
Life insurance is so important because it provides a financial safety net in case you are no longer there to provide for your spouse and children. But don’t get me wrong, life insurance is not just for working parents; stay-at-home parents needs life insurance too. Consider the cost to replace everything that person does – childcare is a major expense!
There are many different options to consider when deciding what life insurance is right for you. The first thing to think about is how long do you need coverage? Life insurance can last a specified period of time (called a term life policy), or a lifetime (including whole life and universal life). I personally have a 30-year term policy; in 30 years most of our major expenses will be gone (house paid off, kids finished with college, etc.). However, if you need life insurance for as long as you are alive (for things such as burial expenses and income replacement for a spouse) you would want to consider permanent life.
Another thing to consider is life insurance to supplement your retirement income. The projections for living solely on social security are not looking good. Most people have an employee sponsored plan, but will that be enough? Permanent life insurance is gaining popularity as a retirement funding option due to pure economics. In today’s world of low interest rates and a fluctuating stock market, the tax advantage of life insurance makes it an attractive option for retirement savings.
There is a lot to consider when planning for your financial future, and we always recommend considering a life insurance policy. Contact us today and we will walk you through the process!
