Struggling to save for retirement? Are you worried about college expenses for your children? What do these questions have to do with Life Insurance?
Life Insurance is defined as insurance that pays out a sum of money either on the death of the insured person or after a set period. Too many people overlook an opportunity at killing two birds with one stone by leveraging life insurance policies to meet the needs of common goals that most families try to achieve on a regular basis. Don’t get me wrong, you can find as many good articles online supporting this avenue as you can poor ones, but the truth of the matter remains that knowing your options and properly educating yourself on said options will ultimately put you in the best position to tackles these expensive tasks.
Next time you meet with your advisor, consider asking him or her if leveraging permanent life insurance makes sense for you and your family’s needs. Make sure you understand the difference between permanent life insurance versus traditional term life insurance. Ask some pressing questions to understand if a combination of Term Life and Permanent Life insurance makes sense for you.
People often look at a blend of the two policies to help protect their family from loss. As their financial conditions change, they often move away from term life insurance into more permanent life insurance to allow the protection vehicle to provide value beyond the “in case you die” scenario.
If you are in the boat of starting to save for college expenses, weigh the value of a traditional college savings plan, coupled with term life insurance, versus considering permanent life insurance to tackle both your family’s college and security needs.
As society evolves, we continue to let money fly from our wallets into more and more buckets. Make sure you take advantage of any potential overlap if you can.