• Gregory Dunlap

5 reasons you must have Adequate Life Insurance in your Financial Portfolio

Life insurance is a contract between an insurance policyholder and an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of money in exchange for a premium upon the death of an insured person. Depending on the contract, other events such as terminal illness or critical illness can also trigger payment. The policyholder typically pays a premium, either regularly or as one lump sum. Other expenses, such as funeral expenses, can also be included in the benefits.

A June 2020 LIMRA study shows ownership of Life Insurance policies has fallen 9% from 63% to 54%, respectively, which is of no surprise to Life Insurance Brokers alike. The idea of Life Insurance ownership, for many, is not a financial goal as is investing in stocks or purchasing a home; it is something often associated with death and who wants that.

So, to improve our relationship with money, here are 5 great reasons to add Adequate Life Insurance to your financial portfolio.

The love For Your Loved Ones Is The Primary Reason To Own Life Insurance.

1. One of the greatest joys in life is building a life with those you love. As a child, you never realize how your life choices can affect your family. But, as an adult, you are well aware of how your choices can impact your family, and Life Insurance will be there to support those choices even if you are gone.

Your Life Insurance Policy will ensure your children are financially cared for if you die too soon. In addition, you will ensure your spouse can maintain the debt you built together for the newly married if you die unexpectedly. For your child, Life Insurance, if purchased in a timely fashion, can create a college fund and provide living benefits that can cover the cost associated with a critical, chronic, or terminal illness. Finally, for your household, Life Insurance can provide generational income, payouts if you die too soon, income if you live too long, and income if you developed a qualifying illness.

Working a Job While Retired Should Be a Choice, Not a Requirement.

2. Are you who you want to be since you're all grown up? As children, we are often asked about our future desires, but I cannot recall a single lesson about retiring the way you want to retire. The retirement age, by definition, has changed over time; but the greater concern is inadequate preparation for income during those retirement years. In addition, over the past thirty years, there were significant shifts in our economy:

  • In 1985, Social Security Income made up 65% of retirement income; today, it makes up approximately 27%.

  • Thirty years ago, employers would often cover most of the healthcare costs for retirees. Today most retirees are responsible for their healthcare costs.

  • We live longer now than what has projected thirty years ago. Will your current income last you till 91 years of age for a male and 94 years of age for a female; if not, how long do you plan to get up every day and go to work?

Thirty years ago, your employer mostly covered the need and costs associated with retirement for you. Today, you have to plan for yourself, and your Life Insurance Policy can help.

A Family Should Not Lose a Home Due To The Death Of The Bread-Winner.

3. Inheriting a new home can be a life-changing phenomenon. Homeownership is amongst the most popular ways to create generational wealth for our family. But for many, it may just be something some think is the right thing to do under inadequate planning. If you are the breadwinner in the family, that income is necessary to maintain the costs of homeownership. The mortgage, property taxes, upkeep, and maintenance; most if not all are required to keep your home in your family's name, but can your family afford that home if you die too soon?

Vanessa Wagner of Baltimore learned from experience; you can lose your home without having an adequate income. Vanessa is 66-years old, unemployed due to a global pandemic that dealt a significant blow to the job market. In addition, the home gifted to her by her grandparents sits on land that requires property tax payments. After 50 years of paying taxes on this home, Vanessa has a $1,200 unpaid tax bill and needs to raise $6,500 to stay in the home she owns.

Life Insurance can help to reduce the transferable tax burden on your home.

Helping your child pay for college can be an amazing feeling and a life lesson.

4. College, for many of us, is a dream; as parents, we want to see dreams come true for our children. The average college student will graduate with approximately $50,000 in student loan debt, says a 2020 study on the eductiondata.org site. Continuing education opens the doors to a broad range of career skills, many of which can build futures for generations to come. But what if there was a way to gift your child $50,000 without physically taking that money from your future retirement funding?

A College Focused Insurance Policy could be one of the most rewarding gifts you can give a young child; it is the gift that keeps on giving. Not only will you help fund your Childs or grandchild's education, but you will also start a path of financial literacy that our youth often lack due to inadequate education.

Life Insurance can provide College-Funding!

Every living person will have some Funeral costs and Final Expenses.

5. Life has been good to you; you lived well, your children are grown, you are within the last quarter of working and looking forward to retirement. But wait, what about your Life Insurance?

You know, the money that takes care of your final expenses so your family won't have to be a burden or even embarrassed to create that Go-Fund-Me account to cover your funeral costs. Sure, you can have a small gathering and have your body cremated. Still, for many, the funeral turns into a family reunion and reflection, which should be a time of solidarity thanks to the arrangements made to honor your life.

The idea of a funeral becoming a family reunion is least desirable, but let's face it, it is the one thing that often brings families together over the years, and it does feel like a reunion for many of us. What if you planned out your final expenses to plan for your one final get-together, the one that shows your family how to keep a legacy alive. That is what I want for every one of my clients; a legacy they leave behind on purpose and purposefully planned.

Learn about Final Expense Insurance today!

Dunlap Financial Services offers insurance that protects your Health, Wealth, and Lifestyle. We partnered with leading carriers to deliver on this protection. Schedule a meeting with a Broker today or visit us on the web at www.dunlapfinancialsvc.com.

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