Life insurance is one of the more challenging components of a comprehensive financial and retirement plan. It can be a tough topic of discussion, in part because no one likes to think too much about their own mortality.
However, the right life insurance plan can protect your family and continue your legacy by financially providing for the people and causes that are important to you.
Protection Against Loss of Income
Many airline employees are either the primary or sole source of income for their families. The loss of that income, particularly if it’s unexpected, can be devastating. From a practical standpoint, the right life insurance provides the income your family needs to not only survive, but maintain the quality of life you helped build. It can also help pay off debts such as credit cards or other loans you may have accrued. There are a variety of products to help accomplish these goals, and it is best to seek professional advice when choosing which one is right for your situation.
Income to Cover Expenses
One of the most overlooked needs for life insurance is for the stay-at-home spouse. Since they have little to no income, many stay-at-home spouses often think there is no need for life insurance. However, if the stay-at-home spouse cares for your children, and you travel for a living (as most of you do), think of the cost to hire a full-time caregiver to fill in while you are gone.
At RAA, we often work with clients who are part of the so-called “sandwich generation.” They may be providing care and/or financial assistance for both aging parents and their own children at the same time. In these situations, life insurance can help protect families against the loss of a caregiver or the loss of funds that provide needed care.
Charitable Giving and Gifts to Heirs
While protecting your family’s income and quality of life is the primary goal, life insurance can also ensure the continuation of your legacy through the causes and people you value. Whether you wish to establish a scholarship at your alma mater or donate to an organization that has special meaning for you and your family, life insurance is a vehicle through which charitable gifts can be funded and arranged. It can also be used to provide a gift to your heirs, easing their emotional and financial transition.
People may avoid talking about life insurance because it can be an uncomfortable subject to confront. Conversely, they may purchase a “standard” policy without really knowing what it covers and what it doesn’t. Imagine the chaos and stress that could ensue if you didn’t have the right life insurance policy in place, should something happen to you.
This is why it is important to understand which life insurance policy will best protect your family and your legacy, and make sure that policy is in place long before it is needed. For help evaluating life insurance plans and deciding which plan is right for you, request a complimentary Q&A session with a certified advisor at Retirement Advisors of America.
Disclaimer: This blog is intended for informational purposes only and should not be construed as individual investment advice. Actual recommendations are provided by Retirement Advisors of America following consultation and are custom-tailored to each investor’s unique needs and circumstances. The information contained herein is from sources believed to be accurate and reliable. However, Retirement Advisors of America accepts no legal responsibility for any errors or omissions. Investments in stocks, bonds, and mutual funds may increase or decrease in value. Past performance is no guarantee of future results. Any of the charts and graphs included in this blog are not recommendations for the purchase and sale of any security.