Why would anyone want to
plan for the unknown? As you no doubt
know, life happens and you often meet unexpected challenges. So it makes sense to plan for
the unknown. We never know what life
will throw at us tomorrow; however, I can safely say that one of three things
will happen to you. You will either
retire (comfortably I trust), you will become disabled and lose work for a
short or an extended period of time, or you will pass on. So in this context you can plan for the
unknown. Is there an investment you can
make that covers all of the above mentioned contingencies that you will
inevitably face? Yes there is and it’s
called Life Insurance. How can it
achieve planning for retirement, handling a disability and preparing your
family for the inevitable passing of your life?
To begin, it’s obvious
that Life Insurance has a stated death benefit.
One designs a Life Insurance portfolio to give your family and/or
business the necessary capital to carry on with their lives after you’re
gone. I call this “Leaving Your Legacy”
which is received by your beneficiaries TAX-FREE. It makes sense whether you own a business or
are gainfully employed. If you’re young,
Life Insurance can provide income to your survivors to maintain your current
standard of living. Often people forget
that Life Insurance extends beyond employment.
At retirement you are frequently offered various pay-out choices. The largest payout is what is called SINGLE
LIFE, meaning that it will pay you a guaranteed monthly benefit for as long as
you alone live. At death, your beneficiary
receives nothing. If you have a good
amount of money in an IRA or a company sponsored 401(k) plan, your family MAY
have enough capital left. It’s always a
good idea to run an analysis as people are living longer than ever before. Even if you have or haven’t accumulated a
retirement portfolio, Life Insurance comes in to provide survivor income. Important to know that by having Life
Insurance, you can opt for the largest pay-out, Single Life, and still leave
your beneficiary with money in the form of Life Insurance.
Next we will discuss how Life
Insurance handles retirement and disability.