• Posted June 17, 2021

Understanding What Life Insurance Can Mean For You When Financial Planning

Have you ever heard someone mention life insurance and your thoughts go right to loss or death?  

Does even the mention of life insurance stir up uncomfortable feelings in you? Well, you’re not the only one. As someone who works with and has benefitted from life insurance, I can guarantee first hand that many people have very complicated feelings about life insurance. However, I’ve also noticed that a lot of the time the feelings people attach to those words have been passed down based on traditional views of life insurance. These traditional views are limiting and leave an opportunity for all of us to expand our knowledge of life insurance and by doing so plan for the future more effectively. The best way we can begin to do this is by taking a closer look at some of the less known facts. 

The first important myth to shatter is that life insurance is only relevant in case of death, which makes it feel quite morbid and dark to talk about. But in truth, life insurance is far more than just “death” insurance. Life insurance can provide living benefits to help you stay safe, protection in the case of a disability, resources for family members, and even a way to supplement and maximize your retirement income while not being taxed. The truth is, life insurance can be many different things, and it comes in many different forms. For example, life insurance can either be temporary or permanent and they can also be set up to donate money to charity.

Another important myth to shatter is the idea that most people don’t have a use for life insurance. Nearly everyone can benefit from life insurance, from parents, to kids, to business owners, to freelance workers and beyond. In reality, the value of life insurance is what it means to you, and I find it very important not to forget that. The fact that life insurance comes in many different forms means that nearly everyone has a use for it, so it’s about understanding what the life insurance you pay for means to you.

Let me give a personal example: When I bought my last life insurance policy there as a specific goal I had in mind. My goal was making sure I felt my son would be taken care of if something happens to me. This forced me consider what that would look like. Who will be the person that is responsible for the things I currently do? How will they feel? What values will they teach? How much of a challenge will it be? If I could relieve some financial stress from them how much would that affect the answers to my other questions?  

In considering my sons overall well-being I will tell you that I truly grasped what it meant to plan for his future using life insurance as a resource. While no life insurance policy can adequately replace what has been lost if someone does pass away, it can begin to answer the questions listed above, and by doing so provide peace of mind and a plan for the future. The fact that no life insurance policy will ever truly capture the effect of that person’s life is not a reason to spread yourself thin buying the most expensive and expansive life insurance policy. Instead, it is a chance to understand that life insurance isn’t about replacing someone or planning for death but about being a resource that can help you and those around you live a happier and healthier life.

I had a goal: to feel my son would be taken care of when I was gone. Life insurance was a major tool in helping me reach that goal. Buying a life insurance policy pushed me to not only consider the questions above regarding my son, but to find the best answers to them that I could. Knowing I have truly put in the time and work to set myself and those I love up for a better future is invaluable, regardless of what policy I end up purchasing. At TenPath Financial Group, we especially understand how relevant this is to a piece of mind for those who are raising children.

With this, I hope that I have been able to help you see beyond what life insurance is often thought to mean. And with this broader understanding, I hope you can feel more ready to prepare for the future, regardless of what may come. I truly love helping others figure out this complex world of life insurance so thank you for reading my words about something that is very important to me. Here at Ten Path Financial Group we excel in thinking outside of the box to maximize your benefits, and if you have questions, we are always here for you!