Life Insurance For Income Protection
These are just some reasons our clients have purchased life insurance. It’s easier to rest peacefully at night knowing your financial future is safe and secure. Whether you are an independent warrior making your mark on the world or you’re a family member who brings home the bread, life insurance is one of the best financial strategies you can pursue to protect your income now, in the future, and after you pass.
At Financial Health Wellness, we strive to bring Wall Street to our Main Street. Helping the young, old, independents, and families protect their income through every stage of their lives is something about which we are passionate.
The Basics About Life Insurance
Before we step into how to protect your income, let’s go over some of the basics every person should know about life insurance. As the average person, you want to protect your family, your income, and your assets, life insurance can cover all of those factors. By coming to Financial Health Wellness, we’ll go over all of these factors to help you figure out the best course of action for your life insurance since there are a few to pick from.
Choosing life insurance can come down to your lifestyle, marital status, personal goals, career aspirations, and financial obligations. There are also a few different options for life insurance policies. We’ll get into this more below, but to touch upon it, you can pick whole life, universal life, variable life, and universal variable life. At Financial Health Wellness, we believe the best option for protecting your income is term life insurance.
The most common cause for someone to purchase life insurance is to supersede the loss of income in the case of a death. Life insurance is meant to keep your loved ones financially supportive and leave them with resources as to how to continue living a comfortable life. Regardless if you have a family of five or it’s just you, life insurance can protect the ones you love from having to deal with a tangled web of financial issues.
Life insurance can be used for many different attributes. It can be used to pay off the last of the mortgage so your family can live in the house without worrying about payments. It can be used to take care of debts from car loans to credit cards. Instead of fearing for your family’s future, life insurance will pay for final expenses or estate taxes while ensuring the next generation is prepared financially.
Who Should Consider Purchasing Life Insurance?
As an adult, there is no such thing as being too young or too old for life insurance. You are always just right.
- Do you want to plan for retirement?
- Have you recently bought a house?
- Are you married?
- Do you have children?
- Is paying for your child’s education important to you?
If you answered yes to any of these questions, you owe it to yourself to protect your income in as many ways as possible.
The Advantages Of Life Insurance
Life insurance is very advantageous for the future of your loved ones. If you want to protect your income, then this is the best path to go on, especially if you want to leave your family with a sum to support themselves. The many advantages of life insurance are listed below.
- Insurance policies make cash obtainable to your family upon a death
- Your family can pay off any debts left behind
- Your income will be protected
- Term life insurance can protect lost potential income during your working years
- It provides a safety net for family’s financial goals
- Keeps business running, provides an education in college, and pays off mortgages
How To Protect Your Income
It may seem difficult to determine exactly how much life insurance is best for you. Every situation is different, which is why it’s best to create step-by-step options for protecting your future with an expert. One of the most popular types of life insurance we recommend to clients is term life insurance and then couple it with other investment strategies to make sure you are confident about your future.
Term Life Insurance
Term life insurance is a type of income protection that lasts for a specified amount of time. The policy premium will remain the same for the set period of time, and the premium can increase after the term is over. Should you die during the term, your beneficiaries will be paid the face value of the policy.
Another common life insurance policy is called whole or permanent. In a whole life insurance policy, you are covered for life. It provides a cash value payout to your beneficiaries that is accumulated through your time as a policyholder and is predetermined.
Other Types Of Life Insurance Policies
As we touched upon in The Basics, there are a few other policies for life insurance. There is universal life, which allows you to make premium payments at any time in any amount you can pay. To make these payments; however, you need to meet the policy expenses and the amount of the insurance coverage. Additionally, the insurance coverage for universal life can be decreased and the cash value can increase based on the interest rate over a period of time.
The variable life is similar to whole life insurance policies because you pay the premium for life. With the death benefit, the cash value changes based on the performance of the investment in the subaccounts. A subaccount means investor funds that are in a pool and are professionally managed for an investment objective. Generally, the policyholder picks the subaccounts and determines the way the cash value should be invested.
Lastly, universal variable life is a blend of variable and universal life insurance policies. You’ll pay the premium at any time, and the specific amount, as long as it adheres to the policy expenses and the amount of the cost of the insurance coverage to ensure that it is met. Similar to universal, it can be decreased and the cash value can fluctuate based on the subaccounts investment performance.
When compared to other life insurance policies, such as whole life insurance, Financial Health Wellness believes term life insurance to be a better option because it leaves your future flexible for different investment opportunities or life changing events.
Other Investment Opportunities
We are a team who firmly believes in keeping in touch with all of our clients throughout life’s many stages. There are opportunities to create holistic income protection strategies, using term life insurance as one aspect of financial security. Additionally, Financial Health Wellness offers:
- Health Insurance
- Managed Accounts
- 401k Plans
- Mutual Funds
- Legal Protections
- Long Term Care
- Auto & Home Insurance
- Debt Solutions
- Debt Watchers
A family is as unprepared to live as the breadwinner who is unprepared to die.