Over the past year and a half, life insurance has been one of the most popular topics of discussion - not only in the United States but globally. If there’s one thing we’ve collectively learned over the course of this pandemic, it’s that life is precious, and preparing for the unexpected can make all the difference in the world. Nearly 40% of Americans say they plan on buying life insurance this year. (1)
The unexpected is exactly that, unexpected. Even when you’ve gone through all the necessary precautions of protecting yourself, your loved ones, and your community - such as getting vaccinated, wearing masks, and washing your hands frequently - the chance that you or someone close to you may pass is always an unfortunate reality.
When I first entered the risk-management sector back in 2003, I heard a colleague say, “People buy life insurance because they love someone more than they love themselves.” Life insurance is a way to continue to care for your family, even when you are no longer living, and can represent a lasting testament to your love for them. That statement has always had a profound impact on me, and while it is undoubtedly true, there are of course many other reasons why someone would purchase life insurance.
What comes to mind when you hear the term “life insurance?” Usually, it’s things like leaving a legacy for your beneficiaries, perhaps assisting kids or grandkids with college expenses, supplementing your income for your still-living spouse, helping kids buy their first home, or perhaps caring for a special-needs family member.
Functions of life insurance you might not immediately think of are: reducing future tax burdens for yourself and your heirs, creating tax-free income distributions, capturing market growth with zero risks, and paying for your own long-term care needs out of a tax-free death benefit that’s accessible while living.
These newer applications for life insurance aren’t really new. They’ve been around for quite some time, but now we’re seeing the life insurance market utilize all of these benefits to their full potential, which has allowed life insurance policies within the IRS’s codebook to become holistic masterpieces for the insured.
Contact me today and we can set up a time to learn how an expertly curated life insurance plan can add value to your portfolio and help protect the ones you love.
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