Dread Subject - Life Insurance

Today I want to talk about reducing your financial risk, primarily the role that dreaded life insurance plays in your financial plan.

I say “dreaded” for a couple of reasons. In many people’s minds, when the phrase “life insurance” is mentioned it conjures up many negative feelings such as the pushy sales person who comes to your home and tells you, you need to buy more or that you have to die in order to collect.

But you need to understand this: Life insurance is meant to protect your financial plan and to reduce or eliminate risk, not something dreaded. What if your significant other passes away suddenly and you count on his/her income to pay the bills, or to take care of the children? Then what? The last thing you want to worry about at this time of sorrow is “where is the money going to come from?” By having adequate life insurance in place it allows your financial plan to continue on with or without you, all for the benefit of your family.

A good financial plan can be devastated by an unforeseen death. All you have worked for will be put at risk without protection. But, this risk can be lessened or eliminated with proper planning.
Owning life insurance has several other benefits as well. It can give you peace of mind knowing that in the event of a loss your family will be protected.

You can gift your life insurance proceeds to your church or favorite charity. Also, the proceeds of your life insurance policy will bypass probate when a beneficiary is named and that money will be available much faster to help with bills.

As you can see, life insurance is a very valuable component in your financial plan. It allows you to reduce or eliminate risk, which is a good thing. So there is no real reason to be afraid of the “dreaded” life insurance? It makes cents to me.