The most disliked words in the investment and insurance world must be “Life Insurance.”
In survey after survey, life insurance salespeople are ranked just ahead of used car salespeople and attorneys.
Of course, they still rank significantly better than our members of Congress.
The proceeds from a life insurance contract can be the difference between drowning in debt to feeling that someone cared enough to help them maintain a certain way of life.
It does not matter whether the life insurance contract was a Term Contract, Whole Life, Index Life or Group Life insurance. They all pay upon death, and death is never timely, even at age 100. We all want our parents to live forever, spouses to never die and loved ones to never grieve.
Here are 5 ways life insurance can be a powerful asset to your financial plan.
Reason #1: To maintain quality of life
First spouse passes away while everyone is working and paying bills. Suddenly, the income to the remaining spouse now drops dramatically.
Question, what happens if the remaining spouse or partner can no longer afford the mortgage or expenses?
Now the house must be sold, everyone uprooted, etc.
Imagine if the deceased spouse left enough money to pay off the mortgage or leave a comfortable cushion for the surviving spouse to enjoy a positive way of life.
Reason #2: To unlock the opportunities of higher education
Parent passes away before the children go to college.
Imagine your death being the reason why your children cannot afford the college of their dreams.
Life Insurance can make all the difference here and term insurance could cost pennies on the dollar to cover college or keep your family in the same home.
Reason #5: To make a lasting philanthropic impact
Most folks don’t have an estate tax issue where life insurance is required. But they may have a desire to leave their favorite charity money and have a positive impact upon others with their death. Your life insurance proceeds could change lives for a charity and the premiums could be 100% tax deductible.
There are many other examples I can give. Please speak with your Financial Advisor to find how to use the most creative and useful tool of life insurance to change lives should the need or situation arise.
All my best,