The short answer is income replacement protection. But let’s dig in a bit deeper to see exactly what it means.
The Real Purpose of Life Insurance
Life Insurance is not a lottery ticket. It is simply meant to replace the income that is lost with the unexpected death of a loved one so those left behind can continue to pay the bills, keep the house, pay for college, or secure their retirement.
It is as essential to financial preparedness as a 401K and savings account.
Dealing With the Unpredictable
While life is unpredictable, many problems can be avoided with proper planning.
A few preventative measures can keep life’s little surprises from turning your plans upside down.
A regular check of your pipes could prevent an inconvenient leak, trying on the pants in the back of your closet a day before your interview might keep your job hopes alive, and a tent at the ready can keep your nuptials on schedule despite unexpected weather.
However, most situations don’t come close to the challenges your family will face in the case of your unexpected passing. Especially if you don’t have adequate life insurance to provide for them after your death.
A sufficient life insurance policy can attempt to replace the loss of income caused by your unanticipated death, but Americans as a whole are woefully underinsured.
Underinsured – The Statistics
According to a study in 2020, 42% of American households would face financial hardship within six months should a wage earner die unexpectedly; 25% would suffer financially within a month.
LIMRA also estimated there are 41 million consumers who need insurance but don’t have it.
There is a lot of hesitancy around purchasing life insurance. People don’t know how much they need, think it is too expensive, or don’t understand the concept at all.
Financial Life Raft
If your family relies on you for income, you should have a plan at the ready to keep them afloat in case of your unexpected death.
The COVID-19 pandemic showed us just how quickly things can change and how important it is to be prepared.
Life insurance, funds from your 401K, and other accounts can be your family’s financial life raft, so make sure your policy offers sufficient coverage for their needs.
Today, buying life insurance is much easier and more affordable than in the past. If you are still nervous about the process or feel like you have questions, we’d be more than happy to speak with you.
At Medallion Financial Group, we believe financial planning is about Family. We have been helping families invest in the future since 1987 through a holistic planning approach. We recognize there are a variety of needs when it comes to retirement planning, plan rollovers, annuities, college planning, life insurance options, and investment management. It is easy to get lost in a sea of choices. Our financial advisors help with the basics and beyond to enable our clients to get the education, advice and management they need to retire with confidence.
Our focus is twofold: first and foremost, we are fiduciary advisors. We stand against any violation of laws, values, and ethics. Second, we treat our clients as part of our family, not only those who call Maryland and Georgia home, but clients across the US who have benefited from our reputation of personal service, integrity, and expertise.
We strive to exceed client’s expectations – because we have high expectations of ourselves.