I was in the wake of my Uncle when I first realized the importance of protecting your loved ones in times of untimely death that was in 2001. Basically I'm in my early twenties and still innocent/ignorant when it comes to financial planning.
The decedent was 46 years old and quite healthy because he was an active member of local cyclist group, the cause of death was car accident. It was a tragedy for his family because he was the bread winner and worst of all no insurance coverage at all even personal accident. Now going back to our main topic the only viable solution for this sad event is to have a counter strategy to offset the incurred expenses and that is possible if you have extra funds in your bank account earning huge interest. Other way of doing this is to have a life insurance - many will argue and show discernment on this but do you have any other options? or maybe an alternative to cover all the expenses once the bread winner passed away?
Life insurance creates a way to help those you care about to maintain their quality of life in the event of untimely death and may provide retirement and other benefits.
Why Life insurance?
- A life insurance policy can provide protection based on your current situation, goals and needs.
*Permanent Life Insurance: Provides lifelong coverage while building cash value.
*Term Life Insurance: Often costs less, but covers only a set period of time and does not build cash value.
Key Points
- Life insurance provides funds to your family or an organization after your passing.
- Term life insurance provides protection at a low cost, but doesn't build cash value.
- Permanent life insurance provides protection while serving as an investment opportunity with potential for growth and can serve as your retirement.
If you already took steps to financially protect your family, remember to periodically assess your situation. Changes in your income, financial obligation and long-term goals mean the type and amount of life insurance you need may have changed, too.
When you discuss life insurance with your financial advisor, you’ll need to review information about your financial situation. For example, you’ll likely cover your:
I will add a financial calculator soon so don't forget to subscribe in my blog.
Life insurance creates a way to help those you care about to maintain their quality of life in the event of untimely death and may provide retirement and other benefits.
Why Life insurance?
- A life insurance policy can provide protection based on your current situation, goals and needs.
*Permanent Life Insurance: Provides lifelong coverage while building cash value.
*Term Life Insurance: Often costs less, but covers only a set period of time and does not build cash value.
Key Points
- Life insurance provides funds to your family or an organization after your passing.
- Term life insurance provides protection at a low cost, but doesn't build cash value.
- Permanent life insurance provides protection while serving as an investment opportunity with potential for growth and can serve as your retirement.
If you already took steps to financially protect your family, remember to periodically assess your situation. Changes in your income, financial obligation and long-term goals mean the type and amount of life insurance you need may have changed, too.
When you discuss life insurance with your financial advisor, you’ll need to review information about your financial situation. For example, you’ll likely cover your:
- Current life insurance and savings
- Current income and monthly expenses
- Other family commitments, such as college funding
- Survivor's basic needs
- Survivors' expected income vs. income needed to cover expenses for life
| Term insurance | Permanent insurance |
|---|---|
| Choose for a specific time period (term) | Choose for long-term protection |
|
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I will add a financial calculator soon so don't forget to subscribe in my blog.
