Why Life Insurance?

by Brian Peter McNamara, CFP®

Value is a perceived benefit that enhances someone's position in life.  Value of financial position should enhance someone's life so much that all or most of their domains of human concern would be impacted significantly and positively.

So how do Life Insurance Company products (products that are intangible) significantly and positively impact a life? 

We all think of life insurance as a way to protect our families and/or business associates from the economic impact of premature death. 

Often people mistakenly conclude that they don’t need or want death benefit after they retire. Their reasoning is that they’ve accumulated retirement assets, and that those retirement assets will be sufficient for their survivors, forever, and under all circumstances.

However, even postretirement death creates a financial consequence to survivors. Social Security and other pension benefits may be reduced. There may have been significant expenses associated with long-term care or medical care that need to be replaced.

Most importantly, post-retirement death benefits, on a guaranteed basis, give you options for additional cash flow while you are alive.  The guaranteed death benefit permits you to spend down assets, knowing they’ll be replaced, receive cash flow from real estate using reverse mortgages, defer capital gains tax using charitable remainder trusts, and otherwise enjoy more of your wealth while you are alive.

We invite you to discover many other attributes of Life Insurance by having a conversation.