Life insurance is one of those necessary tools that often goes overlooked or underappreciated until it comes time to cash it in. Many people know that life insurance plays an important role in their estate plan, but few people see it as a useful asset in their financial plan. The fact is that ultimately, the money provided by a life insurance policy could help protect family assets that may be placed in jeopardy if there is a shortage of estate funds.
For young couples, especially parents, it is important to have adequate life insurance coverage for their children. However, it may be more difficult to afford the level of protection they feel they need. For families just starting out, where income is an issue, term life plans may be a suitable option. Not only do they provide the coverage many parents are looking for, but they are typically more affordable than other plans and allow new families to retain as much income as possible to devote to other things like paying off debt or starting a college fund.
For individuals looking for life insurance coverage later in life, whole life plans may be a beneficial addition to their portfolio. For older adults, when children are going off to college and retirement is even closer, the cash value that whole life plans have built may be used instead of savings for unexpected expenses. Whole life plans offer people a way to effectively plan for their final expenses while providing another source of emergency funds.
Adding life insurance to your financial plan may be a very helpful way to plan for the future, protect your family, protect your assets, and provide yourself with added income later in life if the need arises. For help deciding what plan is best for you, or to find out if your financial needs are well planned for, speaking to an attorney may help.