The success of a financial plan may rest on selecting the right life insurance policy. The best-laid plans can be shattered by the unexpected. If a spouse passes away, or both parents perish, the financial fallout can be significant. Perhaps due to its nature, life insurance is a topic many attempt to steer clear of when creating a financial plan. Beyond that, most people are optimists experiencing difficulty imaging a life insurance policy becoming necessary. While it may be a challenging topic to approach the alternative can be unsettling.
Each day, people face life-changing circumstances. A recent story about a middle-aged family man (with two children) passing away from cancer gave me the chills. Lacking further information about the family’s financial situation, I had to wonder if there was a financial plan in place. We all want to live to old age, yet there are those facing situations like this all the time.
Chances are, this family was like many others. Planning for the future, raising their family, and working hard to make it all happen. At that age, most imagine death years away, long after retirement and growing old together. That all changed with a diagnosis. Within months, the father had become increasingly ill until passing on, leaving a wife and kids behind. Left without an income, parent, and spouse they are left to pick up the pieces.
There are several scenarios which may come to be depending on life insurance coverage. Either the husband lacked coverage, lacked sufficient coverage, or had adequate life insurance protection.
Lacking coverage. Were the husband to pass away without any life insurance coverage in place, the remaining family members may face dramatic changes. Depending on different factors the family may be forced to relocate, take extra employment, and children may be separated.
Insufficient coverage. There is the possibility the husband had life insurance, yet lacked sufficient coverage to match his family’s needs. This can often occur with employer insurance plans. The family may remain stable, yet dramatic lifestyle changes are likely to follow. Lacking enough income, debt may begin to mount.
Sufficient coverage. With sufficient life insurance coverage, life can return as close to normal as possible, following tragedy. Sufficient coverage will adequately satisfy mortgage obligations, other debts, and will enable children to achieve a college education. While the passing of a loved one is unthinkable to bear, a plan in place for continuity can alleviate at least a portion of the worry.
Comparing these three possible scenarios, it’s simple to see the best alternative. Immediate savings today may lead to long-term woes for surviving family members. The same is true for disability insurance and long-term care insurance. Families rely heavily on incomes and when those are threatened, the results can be tragic. A plan in place can help with facing the loss of a loved one. Call today for more information on life insurance and taking care of your loved ones.
For more information on life insurance policies call today. Life insurance can be utilized as a vehicle for retirement savings as well. Call for more details. Visit often for more ways to preserve wealth and plan for the future.