Is One Life Insurance Policy Enough?
Sure, it’s a policy with a name opposite its purpose, but one of the many reasons why life insurance is a must for so many people is because it can be used to cover a variety of costs. Life insurance can supplement income, provide cash for expenses, and most commonly, defer costs associated with loss of life. You might even be able to find out if there is anything else you can claim from if you have a different situation in your life, perhaps elapsing from a traumatic event. Just how much coverage you need is debated widely, in some situations people might need more help than others. However, diversifying your assets with more than what an employer offers may be the key to protecting your family and your assets and providing for their future.
Some experts believe that projecting an amount times your income will provide the necessary amount in a loss. Others purport that this formula is too simplistic to factor in inflation and other costs. One option is to calculate all the costs associated with providing for a family after the loss of a spouse’s income. This can become tedious when you try to include even the odd tasks that a spouse might take care of-think lawn maintenance. That’s why multiple policies can help cover these costs.
Life insurance policies can take many forms. Mortgage insurance is one part of a personal policy that will ensure that a spouse won’t have to sell their home. Did you know a life insurance policy can even be used to pay for college? These funds can be used tax free and won’t count against your family should they apply for financial aid on a FAFSA.
You can also use a policy for long term planning. Replacement of assets is a policy that restores funds that must be withdrawn after the owner turns 70 ½, allowing heirs to retain investments for future use.
Life insurance policies can also cover Long Term Care (LTC). Should you pay into a policy and never use a facility for LTC, your money paid into that fund can be returned.
Life insurance provides a wide range of financial security in the event of a loss. Even if a business provides a policy to employees, for a small cost, you can double or triple your coverage with multiple personal policies, securing a long-term investment. Talk with a financial planner to decide what your priorities are, then tailor a policy to match. These smart investments stay with your family through any circumstances and can be used to assist future generations. That’s the “life” of life insurance.
We can provide financial planning services for you and your family as well as help build a custom life insurance policy.
