Is Life Insurance Worth It? Lines Insurance's Brad Lines Weighs in on MoneyGeek
Lines Insurance Owner and Principal Agent Brad Lines was recently asked by the folks over at moneygeek.com to provide some insights about life insurance, including what factors individuals should consider when determining if life insurance is worth it, and how individuals can leverage life insurance to enhance their estate planning objectives. He also comments on how life insurance can be effectively integrate into a comprehensive retirement income strategy, and how to navigate around the limitations on life insurance. Read on for some highlights, then hop on over to MoneyGeek to read the rest.
On whether life insurance is worth it:
“In my opinion, life insurance is always worth it. Regardless of your age or circumstances, life insurance can provide essential financial benefits to you and your loved ones. If you have dependents, life insurance offers them financial security in the event of your passing. Even if you do not have dependents, certain life insurance policies can be part of a robust savings and investment strategy. The ultimate benefit of a life insurance policy is peace of mind; it’s a key component of any sound, long-term financial plan.”
On effectively integrating life insurance into a comprehensive retirement strategy:
“The primary way is by making sure you have a permanent life insurance policy to help supplement your retirement income if need be. Buying such a policy when you are young and healthy helps keep premiums low in retirement, allowing you to allocate funds for expenses other than insurance premiums. Also, if you’re debt-free, you might want to start investing more in your life insurance plan to help provide income later in retirement. Some life insurance plans can be drawn on while the insured is still living and make great investment tools. Additionally, I recommend those who depend on retirement accounts for income consider a personal umbrella policy that can insulate that account from major claims or lawsuits. Umbrella policies provide extra liability insurance in the event that a claim is successfully made on your property.”
On navigating the limitations of life insurance:
“There are a couple of limitations. One is obviously expense. That is why employees often choose group life insurance policies offered by their employers instead of individual policies. Group life is usually very inexpensive, and there is minimal to no application process. The problem with group life is what happens to that coverage when you leave your job or retire. For most people, the answer is that the group coverage goes away. That’s why I recommend a blend of group and individual coverage tailored to your needs. If you’re younger and healthier, you can also lock in lower individual policy rates to help keep costs down later in life.”
Read the rest on MoneyGeek
To find out more about life insurance from Brad’s perspective, along with several helpful tips about purchasing the right plan, visit moneygeek.com. Ready to explore your next life insurance move? Give us a call to talk through all your options!