Posted on: September 29, 2016 by Goodrich & Watson
If you have a spouse and/or dependents, you’ve probably given at least some thought about your need for life insurance. Whether you are the primary breadwinner or a stay-at-home parent who takes care of the children and household responsibilities so your spouse can work, your sudden death could have a profound impact on your family’s financial situation. If you’re wondering how to make sure your family is protected financially, you know that a Virginia Life Insurance Policy is critical. Here are some additional considerations.
Make Sure your Life Insurance is Adequate
Financial security means different things to different families. When considering how much life insurance you need, identify what you want to achieve. Do you want to make sure your family can afford to stay in your home? Do you want to pay for part or all of your children’s continuing education, or provide a reserve that will allow your stay-at-home spouse to transition to the workforce? Once you have a clear goal, you can estimate how much money it will take to achieve that goal and purchase life insurance to bridge the gap. If you don’t die prematurely and go on to live a long life, your life insurance policy will benefit you. You can borrow against it to fund your living expenses if your retirement savings aren’t sufficient.
Besides life insurance, another way to secure your family’s financial future is through investment. Whether you invest in higher-risk, higher-reward stocks or low-risk CDs or a 401K, if you can afford to set aside a portion of your income for investments, your family will have a nest egg they can use in the event of an emergency.
Protect Yourself In Case You Become Disabled
People in the 35- to 55-year-old age range are far more likely to become disabled than to die prematurely, according to The Actuarial Foundation. If your family depends on your income and you become disabled and unable to work, how long could you afford to sustain your lifestyle? Social Security does provide disability benefits, but those benefits are minimal and it takes a long time to receive them. A disability insurance policy will pay a portion of an ill or injured workers’ wages. Some employers provide this coverage to employees, but many do not. It’s smart to purchase your own disability insurance policy so you know you will be able to pay your bills if you find yourself unable to work.
If you’re concerned about safeguarding your family’s financial future, insurance is, arguably, the best way to do that. Contact us at Goodrich & Watson to learn about your many options.