A Local Advisor On Life Insurance Strategies – “Too many average advisors are unaware of many of the options available to help their clients.”
When asking people about life insurance strategies, many questions pop to their minds. When do I need to start paying for life insurance? Do I really need life insurance? What do you mean by life insurance strategies? What type of life insurance should I have? Who can I talk to about life insurance? These are all good questions that you need to take some time to find answers for.
In the U.S. at the current time, life insurance ownership is at an all-time low. 43% of people do not have enough life insurance while 41% of adults do not have any. The reasons for not having insurance being the cost of the premiums or simply the feeling that it’s not required if someone does not have any dependants.
Life insurance is primarily thought of as a way to protect those you love in the case of your untimely death. This of course is a good reason to invest in this type of insurance. Oftentimes young couples who do not yet have a lot of money saved but want to be protected decide upon term life insurance strategies for this purpose. However, under different circumstances term life insurance strategies may not be your best option.
If you have saved enough money to meet your and your spouse’s needs, perhaps you don’t need to continuing contributing. After all, premiums do get progressively higher as you get older. However, if these savings may not be sufficient or you want to leave something to your children, you may want to keep life insurance in mind.
This doesn’t mean term life insurance is always the answer though. Many people look to permanent insurance which includes an investment aspect with the term policy. Whole life insurance includes insurance company dividends while universal and variable universal life insurance includes investing in an account which is similar to a mutual fund.
Many people do not know which life insurance is their best option or even what their options are. One Saint John Financial Planner, Len Davis, focuses on life insurance strategies that make similar returns to an RRSP, save more in taxes, and create a guaranteed retirement income. On his website he says, “Unfortunately, most financial advisors view life insurance in the same way. Too many average advisors are unaware of many of the options available to help their clients. Options that are more lucrative and safer than the RRSP mantra that most Canadian financial planners seem to focus on. This does a disservice to many of their clients, particularly those professionals and business owners who have more resources to protect and invest…which means they also have more to lose.”
There are several types of life insurance strategies that you may wish to look into before deciding upon which is best for you where you are at now. Not all situations are the same. Life insurance benefits can be used for more than just benefits after you are dead. Find a good financial advisor in your area today to discuss your options.