September was Life Insurance Awareness Month! We almost let it slip us by this hectic and unusual year. Nonetheless, we’re here to offer a friendly reminder about the power of life insurance. We believe life insurance is a crucial part of a well-rounded financial plan for most people. We encourage you to not let time get away from you when it comes to life insurance planning!
What is the purpose of life insurance?
Although life insurance may not be the best solution in every scenario, there are many great reasons for having life insurance. The reasons draw upon parts of everyone’s unique situation, such as their goals, financial outlook, family needs, family history, and more. This article mentions some ways life insurance is beneficial. Thinking through these might help you determine if having life insurance coverage is the right solution for you.
Final Expenses – Only the Beginning
When many people think of life insurance, they may initially think of covering their own final expenses, not wanting to burden their family with those costs. But life insurance is beneficial for so many more reasons than that! After all, oftentimes a family’s savings can handle some or most of the final expenses, even with the ever-rising costs associated with burial, funeral, and related expenses.
Building Generational Wealth
Possibly the next most common reason people want to add to their life insurance coverage is because it allows for an extremely cost-effective way to pass wealth to the next generation. In this light, life coverage can be seen as an economical generational savings fund, whereby a person’s children, grandchildren, or others can benefit in the long-term.
Replacing an Income Stream
Having a child is both a blessing and a large commitment of both time and money. For this reason, it is often smart for couples with young kids to get life coverage to function as a form of income protection. Especially if a couple relies on just one parent to provide most of the income to support the family, that breadwinner should be protected to safeguard the lifestyle, goals, and needs of the family in case something were to happen to the breadwinner.
Supplementing Retirement Income and Covering Liabilities
Other situations where life insurance can help a family’s financial outlook are by bolstering retirement plans and by covering a large debt. Some types of life policies can be designed with a cash value component, in which cash can be pulled out of the policy to help supplement income during retirement, or to help pay for unexpected expenses. Further, if a person or couple takes on a large debt such as a mortgage, a life policy helps ensure the family can retain their house, regardless of what the future may bring.
Depending on your and your family’s specific financial outlook and situation, there are various types of life policies that can help to protect your family and safeguard your goals. It all starts with your current outlook, your family’s needs and wants, and your long-term goals. From there, a policy can be designed to best protect and cover you and your family.
If you would like to discuss further, would like a complimentary, current life insurance review, or have any questions, feel free to contact us at (423) 283-9821, or at Insurance@BCSWealth.com.