Few areas of your life are affected by your decisions as much as your finances. The money choices you make affect your spouse and your children. Therefore, as you consider whether or not add to life insurance to your financial portfolio, you need to think about the financial implication on both sides of the coin.
Here are the facts:
If you purchase life insurance, you are adding to what may already be a secure future if you factor in your retirement and any investments you make along the way. If you choose not to purchase life insurance, you may be denying your family the financial security they will need to make it through the initial period of grief and adjustment after your passing.
These statements are not scare tactics. Rather, they are a reality of life. In today’s increasingly unstable economic climate, you’ll need to seek more than one stream of financial security. Life insurance gives you another option - not just for you and your spouse; but, also, for future generations.
Beyond Survival: Life Insurance Can Build Wealth
You can use the money you amass over time to survive or to create wealth. The difference between the two is determined by where your money goes and what you intend it for. In the case of life insurance, you can use it to add wealth. How?
Paying Off Debt
No, paying off debt does not create wealth. Yet, life insurance can provide a buffer for securing wealth if not building it. In other words, it keeps debt from hindering further wealth building. If your spouse or children are suffering from a high amount of debt, a policy could provide the relief they need to get ahead financially instead of treading water.
Contributing to the Community
Some beneficiaries of life insurance policies never need them once they cash them in. Therefore, they have an opportunity to give back to the community. Ask yourself what schools, organizations, youth charities, churches, or other youth-based entities you could help out with an additional $100,000.
Your Children’s or Grandchildren’s Education
Should your children or grandchildren become the beneficiaries of your policy after your passing, they may be able to use this inheritance to pay for college. Since post-secondary education is not cheap, a life insurance policy could keep a younger member of your family from incurring a college debt that could take a lifetime to pay off.
Leaving a Financial Legacy
Believe it or not, life insurance can be a tool that opens the door for teachable moments. Children grow up and begin to reflect on what their parents taught them in both words and deeds. Taking out life insurance is a smart financial decision that can make an impression on your children and grandchildren.
If they see that you are thoughtful and caring enough to make sure that your husband or wife are taken care of after you are gone, they may see the value in doing the same thing for their spouse or family. Leaving a legacy means providing guidance and insight, as well as living an exemplary life. And few areas of your life are as important as teaching your family about being financially responsible.
Get Your Copy of Investments Don’t Hug Today
Mark Bertrang has dedicated his life to helping people secure their financial futures. His many years of experience in the financial world has given him many valuable insights that he has shared in his book, Investments Don’t Hug. You may find his knowledge and wisdom valuable in your life as you forge your financial future.
To find out more about this thought-provoking and practical book, contact Mark Bertrang at 608-782-5433 or get your copy online.