Colleen Corrigan, Life & Health Agent
Having life insurance coverage is one of the best ways to protect your loved ones and is considered to be the cornerstone of sound financial planning. Life & Health Agent Colleen Corrigan examines two situations you may not have considered when purchasing a policy.
Why a non-breadwinner partner in a household should get life insurance
Life insurance should be reviewed and purchased for both the primary breadwinner and secondary income earners within a family. There are misconceptions that if anything happens to the non-breadwinner, there would be minimal financial impact because the income is lower than the higher earning spouse.
As a family reviews their financial planning, they should include life insurance into this equation. Consider the following during the review:
Life Insurance will assist the surviving spouse with household expenses and upkeep. Undoubtedly, the loss of the non-breadwinner will mean hiring someone to assist with household duties or even childcare. Life insurance can soften the financial strain of the loss of support within the household
Life insurance can be used to support your family’s educational needs. Money can be set aside for future tuition, transportation to school or private tutors.
Life insurance will alleviate any burden left behind due to the passing of the non-breadwinner. Often, there are medical bills, burial costs and other expenses that the family must manage. It can be difficult to deal with the pain of losing a family member while managing bills associated with the loss.
The gift of life insurance can also be used as inheritance to your spouse and/or your children. Life insurance is the final act of caring for your family and securing their future.
Why the life insurance provided by your employer may not be enough
There are two primary issues with life insurance programs offered by employers. First, the life insurance offered is lower cost or no-cost to employees. However, many plans do not allow employees to purchase the amount needed to cover the financial needs of their family. These programs also do not permit adding spousal life insurance or enough life insurance coverage for the spouse. Secondly, this coverage may not be permanent. Life insurance programs offered to employees are not portable. If an employee leaves his/her employer, the coverage will need to be converted, which can be more costly than the premiums paid during his/her employment.
In moments of grief, the last thing you want is to leave your loved ones with debt, so take a close look at whether the life insurance you are offered through work is the best way to provide for your family. It is important to partner with a broker who will assist you with your financial planning to protect your assets and make sure your family can continue the lifestyle they are used to and achieve the goals planned.
Questions about life insurance? Contact Wallace & Turner at (937) 324-8492 in Springfield, (937) 652-8492 in Urbana, or info@wtins.com.