Life Insurance as a Financial Planning Tool

Life insurance in the U.S. began in 1759, initially created to support widows of church ministers. Nearly 265 years later, the industry has evolved to meet the modern family’s needs while continuing to provide essential financial value.    

At 210 Financial, we stress the importance of having a comprehensive financial plan, and life insurance is a vital aspect. September is life insurance awareness month, drawing attention to the need for safeguarding your loved ones. 

How does it better your financial plan?  

Life insurance can sometimes feel unnecessary, but it can offer multiple potential benefits for everyone. That’s why we encourage you to see if it would help your financial plan for you and your loved ones. Here are three reasons why adding life insurance can help your plan if you don’t already have it. 

• Diversified Portfolio: Life insurance adds balance and diversification to your financial portfolio.  

• Estate Planning: It’s a key element in estate planning, with the goal of ensuring your loved ones are financially secure after your passing.   

• Protect Your Loved ones: Life insurance aims to protect your loved ones from unexpected costs when you pass away.  

Learn More: Episode 7: Is Life Insurance Valuable? 

Life insurance as part of estate planning 

Discussing estate planning can be challenging, but leaving a legacy for your loved ones is invaluable. Life insurance helps cover unexpected funeral expenses and other financial obligations. This support can significantly ease the burden on your family during difficult times.  

Learn More: Supporting Your Loved Ones Even After You’re Gone 

The best plan for you and your beneficiaries 

Researching various types and plans of life insurance is crucial to making it an effective financial tool. Select a plan with the goal of protect your loved ones from unexpected costs, ensuring financial comfort.  

A good place to start is to investigate both whole life insurance and term life insurance and which one makes more sense for you. They both offer a death benefit to the beneficiaries. The main difference is that whole life insurance offers the death benefit for the entire lifetime and term life insurance is only within a certain time frame.  

• Burial insurance is a whole-life policy to cover your future burial and other end-of-life expenses.  

• Survivorship life insurance is a type of joint policy that covers two people instead of one, offering the same characteristics and benefits as individual life insurance.  

• Universal life insurance is a type of whole life insurance that offers lifetime coverage and builds cash value. It allows you to adjust premiums cheaper than traditional whole-life insurance. However, if your investments underperform, your cash value may decrease, and your premiums could increase. 

Conclusion: 

Life insurance is an imperative aspect of your financial planning. This September for financial planning month consider adding life insurance to your financial plan. If you want or need help making this decision the advisors at 210 Financial may be able to assist you in finding a good plan or determining if life insurance is right for you.   

Meet with 210 Financial:  210 Retirement Blueprint Financial Review!

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210 Wealth Management, Inc., d/b/a 210 Financial, is a federally registered investment adviser under the Investment Advisers Act of 1940. Registration as an investment adviser does not imply a certain level of skill or training. The oral and written communications of an adviser provide you with information about which you determine to hire or retain an adviser. 210 Financial, Form ADV Part 2A & CRS can be obtained by visiting: https://adviserinfo.sec.gov and search for our firm name.  Insurance products are offered through 210 Financial, Inc. d/b/a 210 Financial.