Taking Care of Your Loved Ones with Life Insurance

By: David Smyth, February 6, 2020

Ah, February. The month of love, right? While most people think of romantic love during February, I'm going to focus on ways to take care of your loved ones and your family, especially when it comes to where you spend your money.
 
One thing I've learned in my years in the financial industry is that many families don't hesitate to spend a lot of money on their families. We see parents who want to start 529 accounts before the baby is even born (you can't), parents who will pay for expensive private schools, indulge their children's sports (or video game) goals, or spend their emergency funds on family vacations.
 
Now, saving for college, a good secondary education, a physical outlet, and wonderful family memories are all great things that we encourage when our families are setting their goals and budgets. But the first line of financial defense all families should consider when it comes to their kids' futures is the one we see that's most likely to be overlooked - life insurance.
 
Perhaps it's because no one likes to think about the unthinkable, but here's the deal: if you buy a life insurance policy today that will protect your family's home and lifestyle, well, you don't have to think about those unthinkables again, right? You can sleep at night and focus on all those fun things to do in life, knowing that if something does happen, financial hardship won't add to your family's burden.
 
I want to address a few more misconceptions we hear about life insurance as we encourage our client families to secure this important protection. First, many people assume life insurance is more expensive than it is. LifeHappens.org research shows that most Americans believe that life insurance costs about three times more than it actually does, and 44 percent of millennials overestimate the cost of life insurance by five times.* Of course everyone's situation and needs are different, but our team can help you find a policy that fits your family's needs and budget to make sure you and yours are protected.
 
Too many families we work with assume that if they take the coverage offered by their employer, they're all set and can check the life insurance box. But it's probably not that simple. Yes, your employer plan could be sufficient, but it's a good idea to take a close look to be sure, especially if you have several kids. Keep in mind too that many plans don't go with you if you leave that job. That means if you develop a medical condition in the meantime, your premiums could go up if you do need to secure additional coverage. It's better to lock in a low rate while you're healthy.
 
I've also heard people assume that only the working spouse needs to be covered, but consider this: if something happens to a non-working spouse who provides full-time childcare, how will you pay for your kids' care? We all know how those daycare costs can add up. Plus, a good policy can also offset any income a stay-at-home spouse might have earned after going back to work as the kids grow up.
 
Life insurance isn't just about term policies for young and growing families either. Permanent life insurance can offer many ways to leverage assets later in life for goals such as charitable giving, leaving a legacy to future generations, and some policies can offer a cash value option that policy holders can borrow against. If you have any of these goals for your family and you're nearing retirement, give us a call and let's chat about your options. We'd love to help.
 
The main point to take away is, life insurance can be an integral part of any solid financial plan - and one of the best ways to take care of your loved ones. If you think you're underinsured or haven't reviewed your coverage in a while, we can help. Call us today.
 
*According to the 2018 Insurance Barometer Study, conducted by Life Happens and LIMRA.
 
Any life insurance guarantees are based upon the claims-paying ability of the issuing insurance company.

Family Financial Partners | Growing Wealth, For Generations ™