Insurance – Planning Ahead for Optimal Choices

Life Insurance Planning Ahead

By Roz Jones

Depending on your career track and options, you may have a retirement plan in place that you have contributed to. This is an excellent way to save for the future and help guarantee income after retirement. Sometimes your retirement income is all you need to live life in the manner you are used to and sometimes… not so much. 

There are lots of ways to increase your savings and make investments that will add to your income down the line. Your financial planner will have lots of information about ways to save that help you avoid taxes and maximize income. Make an appointment and see what’s right for you. 

Another great way to save for the future and provide income in the case of an extended illness and/or death is through insurance products. Life insurance and other insurance products can provide income when you need it most and help safeguard your family in the event of your death. Here’s how: 

Life insurance- Life insurance can protect your assets and your family’s way of life in the event of your death. If you should die, you can provide enough money to pay off a mortgage and income for your widow to get back on their feet and move forward. 

Did you know? Life insurance isn’t just about insuring a working spouse. You can insure your children, which keeps them eligible for coverage when they become adults – regardless of their health history. This is a very big deal should your child suffer a childhood illness that might otherwise become a pre-existing condition. Consider purchasing a life-insurance policy for your child to guarantee they get coverage when they become an adult. 

Asset insurance- Insuring your assets, like your car, is mandatory. Generally, so is homeowners insurance. Did you know you can also insure big ticket items? Properly insuring your personal items can be very important against theft and loss. If you are a renter, you should also insure your contents and have coverage for liability in case something happens under your roof. Though asset insurance won’t generate retirement income, it is important to insure yourself against all forms of loss so you don’t face expenses unnecessarily later in life. 

Annuities- Annuities are an insurance product that offer tax-deferred income after you retire. While life insurance pays out after you die, annuities collect income and pay out before you die. This can create another income stream that is outside of your work-related retirement plans. 

Insurance riders- A rider is a policy extension that adds benefits or modifies an insurance policy to enhance or expand the benefit. Riders can provide excellent income for medical events or other unexpected needs that pop up as we grow older. They sometimes can make all the difference in the quality and quantity of care or income if there is an accident or illness. 

Insurance is often an excellent way to supplement retirement income and safeguard against unexpected illness, injury, or death. Being aware of what is available and investing wisely can be a great compliment to your investment portfolio.

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