Why You Should Get Serious About Life Insurance – Episode 21

Many people don’t often think about life insurance as a major part of their financial plan. Or perhaps they only consider it as a valuable investment only when they’re younger. We believe that should change.

 

Yes, it can be a bit depressing to have to think about the case of your own death and if your loved ones would be taken care of financially. However, in that case, life insurance can provide for your loved ones for years, and is well worth taking the time to include it as part of your plan. And believe it or not, some life insurance policies can actually have benefits while you’re still living.

 

In this episode, we are talking about why you need life insurance, how much life insurance you should have, and what else life insurance can do for you. Thank you for watching and listening!

 

(By the way, this episode was recorded in September, but we swapped it out for another episode at that time. While it isn’t “life insurance awareness month” when this is released, the importance is still the same!)

 

 

Links:

• Episode 7: Is Life Insurance Valuable? (& Tax Implications of Converting Retirement Plans)
• Episode 17: Medicare Open Enrollment: Everything You Need to Know

 

Key Takeaways:

 

1) Life insurance takes care of someone else. If there is someone you love, there are going to be things they have to take care of when you die. This could be financial obligations like a mortgage or other debt. There are also obligations of arranging your funeral and all the costs that come along with it. What’s even worse is that all of this will come at a time when they are in the grieving process. By having life insurance now, you can alleviate much of the financial burden in that event.

 

2) A good rule of thumb is to have 7-10x what you earn on an annual basis in life insurance. When the primary breadwinner dies unexpectedly, many families can’t make ends meet without that income. If you have a mortgage, student loans, credit card debt, etc., you need to make sure you have enough life insurance for your family to pay them in the unlikely event of your death. Life insurance can also help cover the cost of your children’s education.

3) Life insurance can also cover long-term care, and be part of your income planning or tax planning. Life insurance isn’t just “death insurance.” You can also use some forms of life insurance to help with the costs of long-term care, income planning, and more! Be sure to discuss your life insurance options with a financial advisor.

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 Investment advisory products and services made available through AE Wealth Management, LLC (AEWM), a Registered Investment Advisor. Insurance products are offered through the insurance business 210 Financial. 210 Financial is also an Investment Advisory practice that offers products and services through AE Wealth Management, LLC (AEWM), a Registered Investment Adviser. AEWM does not offer insurance products. The insurance products offered by 210 Financial are not subject to Investment Advisor requirements. AEWM and 210 Financial are not affiliated companies.

All investments are subject to risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Any references to guarantees or lifetime income generally refer to fixed insurance products, never securities or investment products. Insurance and annuity product guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company. 1634231-1/23